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Suppose the Economy Is Experiencing Frictional Unemployment of 1 Percent

Question 88

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) 3 percent
B) 4 percent
C) 5 percent
D) 7 percent
E) 8 percent

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