In a Country with a Working- Age Population of 30

Multiple Choice

In a country with a working- age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part- time, half of whom wish to work full- time.If 1 million of the unemployed are cyclically unemployed, what is the natural unemployment rate?

A) 6.7 percent
B) 5 percent
C) 5.6 percent
D) 1 percent
E) 11.1 percent