Answer : The answer is option C.
When employment rate is full then in economics the unemployment rate is called the natural unemployment rate. Therefore, option C is correct.
The natural unemployment rate O A. is the same from year to year O B. is...
The natural rate of unemployment is the economist's notion of a. frictional unemployment. b. full employment. c. cyclical employment. d. structural unemployment.
When the output gap is negative, the actual unemployment rate is: O below the natural rate. O equal to the natural rate. Oabove the natural rate. The actual and natural unemployment rates are not related to the output gap.
8) Consider an economy in long-run equilibrium with an inflation rate () of 0.08 per year and a natural unemployment rate of 0.05. Suppose Okun's law holds and a one percentage point unemployment rate reduces real output by 2% of full-employment output. The expectation-augmented Phillips curve is givep by increase in the т . ne . 2.5 (u-005). Consider a two distr maErTTelintyear,π .006 and me . 008. In the second year, π.004 and㎡. (a) In the first year, what...
The unemployment rate that is consistent with "full employment" and the "natural rate of unemployment" is OA. zero OB. cyclical unemployment. ° C, the sum of the frictional rate and structural rate. OD, 4 percent.
1. "Full employment" exists when the unemployment rate equals? a. zero b. the cyclical unemployment rate c. the structural unemployment rate d. the natural unemployment rate e. none of above 2. Which of the following is probably not true regarding unemployment in Europe? a. unemployment benefits tend to last longer than in the US b. unemployment benefits tend to replace a larger portion of one's salary than in the US c. structural unemployment is generally lower than in the US...
3. The table below shows unemployment and labor force statistics for an economy.Actual rate of unemployment3%Natural rate of unemployment4%Population of the country125mitlonNumber of people employed97miltionNumber of people unemployed3 millionNumber of people employed part-time5 millionNumber of discouraged workers2 milliona. Calculate the size of the labor force.b. Calculate the labor force participation rate. Show your work.c. Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain.d. Calculate...
How does the unemployment rate fluctuate over the business cycle? Unemployment rate (percentage of labor force) When the unemployment rate is greater than the natural unemployment rate, the output gap is When the unemployment rate is less than the natural unemployment rate, the output gap is 1044 Unemployment rate nis O A. positive; negative B. negative; positive O C. negative; zero OD. zero; positive Natural unemployment rate The graph shows the unemployment rate and the natural unemployment rate between 1980...
If unemployment is above the natural level of unemployment, which one of these statements MUST be true? Select one: O a. Employment must be below full employment O b. Cyclical unemployment must be negative o c. Real GDP must be above potential GDP d. The economy must be in an expansion e. The economy is experience a strong demand-pulled inflation
If an economy is operating at the natural rate of unemployment, it is OA) experiencing inflation. B) in a recession. OC) producing at its full employment real GDP. D) in an expansion.
when the actual unemployment rate is equal to the natural rate of unemployment that implies that there is no cyclical unemployment. true or false?