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    Macroeconomics Study Set 40
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    Exam 5: Monitoring Jobs and Inflation
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    Suppose the Economy Is Experiencing Frictional Unemployment of 1 Percent
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Suppose the Economy Is Experiencing Frictional Unemployment of 1 Percent

Question 21

Question 21

Multiple Choice

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?


A) 5 percent.
B) 7 percent.
C) 3 percent.
D) 4 percent.

Correct Answer:

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