Look at the following data: The structural unemployment rate is 4 percent,the natural unemployment rate is 5 percent,and the cyclical unemployment rate is 3 percent.The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.
A) 2; 7
B) 2; 8
C) 1; 7
D) 1; 8

Question

Quizplus · Accepted Answer

The frictional unemployment rate can be calculated as the difference between the natural unemployment rate and the structural unemployment rate:

Frictional unemployment rate = natural unemployment rate - structural unemployment rate = 5% - 4% = 1%

The actual unemployment rate can be calculated as the sum of all types of unemployment:

Actual unemployment rate = structural unemployment rate + frictional unemployment rate + cyclical unemployment rate = 4% + 1% + 3% = 8%

Therefore, the best choice is D, with a frictional unemployment rate of 1% and an actual unemployment rate of 8%.

Look at the Following Data: the Structural Unemployment Rate Is