Exhibit 16-2 Unemployment categories
Category# ofIndividuals
Frictional unemployment  20
Structural unemployment  35
Cyclical unemployment  60
Discouraged workers    5
Underemployed workers  10
Fully employed workers410
Population900
Using the information in Exhibit 16-2, the natural rate of unemployment is

A. 2.8 percent.
B. 10.3 percent.
C. 11 percent.
D. 21.5 percent.


Answer: C

Economics

You might also like to view...

Expansionary monetary policy is designed to stimulate the economy by increasing the money supply, but not create much inflationary pressure

Indicate whether the statement is true or false

Economics

The cross-trade of very similar products exported and imported by trading partners seems to contradict which of the following model(s)?

a. Ricardian b. Heckscher-Ohlin c. specific-factors d. It contradicts all of these models.

Economics

The civilian labor force consists of:

A. all civilians over the age of 16. B. the employed plus the unemployed who are not in the military. C. only individuals who are actually at work during a given week. D. civilians who are not in prisons or mental hospitals.

Economics

Suppose that the buyers of bread higher incomes and bread is an inferior good. In the market for bread, this will cause the ________ and the equilibrium price to ________.

A. supply of bread to decrease; increase B. supply of bread to increase; decrease C. demand for bread to decrease; decrease D. demand for bread to increase; increase

Economics