Statement I: As the unemployment rate declines from 7% to 5%,we are reducing cyclical unemployment,but not structural or frictional unemployment.
Statement II: If the unemployment were 8%,then cyclical unemployment would be 3%.
A) Statement I is true and statement II is false.
B) Statement II is true and statement I is false.
C) Both statements are true.
D) Both statements are false.
Correct Answer:
Verified
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