Multiple Choice
If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the
A) frictional unemployment rate is 5 percent.
B) cyclical unemployment rate and the frictional unemployment rate together are 5 percent.
C) cyclical unemployment rate is 4 percent.
D) natural rate of unemployment will eventually increase.
Correct Answer:
Verified
Correct Answer:
Verified
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