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Refer to the Following Table When Answering
Table

Question 8

Multiple Choice

Refer to the following table when answering
Table 7.2
 Separation  rate  Finding  rate  Labor  force 20152%20%13020162.5%15%100\begin{array} { c c c c } \hline & \begin{array} { c } \text { Separation } \\\text { rate }\end{array} & \begin{array} { c } \text { Finding } \\\text { rate }\end{array} & \begin{array} { c } \text { Labor } \\\text { force }\end{array} \\\hline 2015 & 2 \% & 20 \% & 130 \\2016 & 2.5 \% & 15 \% & 100 \\\hline\end{array}
-Consider the data in Table 7.2. Using the "bathtub model" of unemployment, in 2016 the natural rate of unemployment is:


A) 14.3 percent
B) 14.6 percent
C) 0.2 percent
D) 85.7 percent
E) 16.7 percent

Correct Answer:

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