Look at the following data: The frictional unemployment rate is 2 percent,the structural unemployment rate is 3.5 percent,and the actual unemployment rate is 9.5 percent.The natural unemployment rate is ____________ percent and the cyclical unemployment rate is __________ percent.
A) 1.5; 4
B) 5.5; 4
C) 1.5; 6
D) 6; 15

Question

Quizplus · Accepted Answer

The natural unemployment rate is the sum of frictional and structural unemployment rates, so it is 2% + 3.5% = 5.5%. The cyclical unemployment rate is the difference between the actual and natural unemployment rates, so it is 9.5% - 5.5% = 4%. Therefore, option B is the correct answer.

Look at the Following Data: the Frictional Unemployment Rate Is