Answered: Suppose that the natural rate of…

Suppose that the natural rate of unemployment is 5% for those under 55 and their official unemployment is 7%. The cyclical unemployment rate for those under 55 is a. 5% b. 7% c. 12% O d. 2%

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 4QP

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Question

Suppose that the natural rate of unemployment is 5% for those under 55 and their official unemployment is 7%. The cyclical
unemployment rate for those under 55 is
a. 5%
b. 7%
c. 12%
d. 2%

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