Use the following to answer questions:
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure 16-4: Actual and Natural Rates of Unemployment. In 1982, the natural unemployment rate (structural plus frictional) was approximately:
A) zero.
B) 4%.
C) 6%.
D) 10%.

Question

Use the following to answer questions: 
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure 16-4: Actual and Natural Rates of Unemployment. In 1982, the natural unemployment rate (structural plus frictional) was approximately:
A) zero. 
B) 4%. 
C) 6%. 
D) 10%.

Quizplus · Accepted Answer

The natural unemployment rate in 1982 is approximately 6%, which is where the actual unemployment rate intersects with the long-run Phillips curve.

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