Look at the following data: The frictional unemployment rate is 1.5 percent,the natural unemployment rate is 4.5 percent,and the cyclical unemployment rate is -1 percent.The structural unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.
A) 6; 3.5
B) 3; 5.5
C) 3; 3.5
D) 6; 5.5

Question

Quizplus · Accepted Answer

The natural unemployment rate is the sum of frictional and structural unemployment. Given the natural rate is 4.5% and frictional is 1.5%, structural unemployment is 3%. The actual unemployment rate is the natural rate plus cyclical unemployment, which is 4.5% - 1% = 3.5%.

Look at the Following Data: the Frictional Unemployment Rate Is