Exhibit 12-2 Unemployment categories $$\begin{array} { | l | c | }
\hline \text { Category } & \begin{array} { c }
\text { \# of } \
\text { Individuals }
\end{array} \
\hline \text { Frictional unemployment } & 20 \
\text { Structural unemployment } & 35 \
\text { Cyclical unemployment } & 60 \
\text { Discouraged workers } & 5 \
\text { Underemployed workers } & 10 \
\text { Fully employed workers } & 410 \
\text { Population } & 900 \
\hline
\end{array}$$ Using the information in Exhibit 12-2, the number of individuals included in the natural rate of unemployment is

Question

Exhibit 12-2 Unemployment categories $$\begin{array} { | l | c | } 
\hline \text { Category } & \begin{array} { c } 
\text { \# of } \
\text { Individuals }
\end{array} \
\hline \text { Frictional unemployment } & 20 \
\text { Structural unemployment } & 35 \
\text { Cyclical unemployment } & 60 \
\text { Discouraged workers } & 5 \
\text { Underemployed workers } & 10 \
\text { Fully employed workers } & 410 \
\text { Population } & 900 \
\hline
\end{array}$$ Using the information in Exhibit 12-2, the number of individuals included in the natural rate of unemployment is

Quizplus · Accepted Answer

The natural rate of unemployment includes both frictional and structural unemployment, which sum to 55 (20 + 35).

Exhibit 12-2 Unemployment Categories Using the Information in Exhibit 12-2, the Number of Individuals