consider an economy where the natural rate of unemployment is equal to 4%. if the actual unemployment rate…

consider an economy where the natural rate of unemployment is equal to 4%. if the actual unemployment rate is equal to 6%, then\na. structural unemployment rate is 2%.\nb. frictional unemployment rate is 2%.\nc. cyclical unemployment rate is 2%.\nd. cyclical unemployment rate is 10%.

consider an economy where the natural rate of unemployment is equal to 4%. if the actual unemployment rate is equal to 6%, then\na. structural unemployment rate is 2%.\nb. frictional unemployment rate is 2%.\nc. cyclical unemployment rate is 2%.\nd. cyclical unemployment rate is 10%.

Answer

Brief Explanations:

The natural rate of unemployment is the sum of frictional and structural unemployment. Cyclical unemployment is the difference between the actual unemployment rate and the natural rate. Given natural rate = 4% and actual rate = 6%, cyclical unemployment rate = actual rate - natural rate = 6% - 4% = 2%.

Answer:

C. cyclical unemployment rate is 2%