If the Frictional Rate of Unemployment Is 1%, the Structural

Multiple Choice

If the frictional rate of unemployment is 1%, the structural rate of unemployment is 2.1%, and the total unemployment rate is 7%, then we can conclude that:

A) the cyclical rate of unemployment is 3.1%.
B) the equilibrium rate of unemployment is 3.1%.
C) the economic growth rate is -7%.
D) 7% of workers in the labor force are underemployed.