Suppose that in an economy the structural unemployment rate is 2.2 percent,the natural unemployment rate is 5.3 percent,and the cyclical unemployment rate is 2 percent.The frictional unemployment rate is _________ percent and the actual unemployment rate (in this economy)is ___________ percent.
A) 7.5; 3.3
B) 4.2; 11.7
C) 7.3; 3.1
D) 3.1; 7.3

Question

Quizplus · Accepted Answer

The frictional unemployment rate can be found by subtracting the structural unemployment rate from the natural unemployment rate (5.3% - 2.2% = 3.1%). The actual unemployment rate is the sum of the natural unemployment rate and the cyclical unemployment rate (5.3% + 2% = 7.3%).

Suppose That in an Economy the Structural Unemployment Rate Is