Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the following is true?   a. The economy has a full employment.   b. Cyclical unemployment is negative.   c. Frictional unemployment becomes zero.   d. The economy is in recession.

Q: Which of the below is true about the above case? a. The natural rate of unemployment is above the…

A: Initial Equilibrium: => Y = A * K^0.5 * L^0.5 => Y = 9 * 16^0.5 * 9^0.5 => Y = 9 * 4 * 3…

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Q: The unemployment which is in excess of the NAIRU is called _____. A.seasonal unemployment…

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A: Participation Rate in the Labor Force:the proportion of adults who are of working age who are either…

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