Suppose the economy has a population of 35 million people and a labor force participation rate of 50%. Furthermore, suppose the natural rate of unemployment in the economy is 6%. If the current number of unemployed people is 4 million people, what is the rate of cyclical unemployment rate? Answer: __________% (Cut off at the first decimal point.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter21: Unemployment
Section: Chapter Questions
Problem 28RQ: After several years of economic growth, would you expect the unemployment in an economy to be mainly...
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Suppose the economy has a population of 35 million people and a labor force participation rate of 50%. Furthermore, suppose the natural rate of unemployment in the economy is 6%. If the current number of unemployed people is 4 million people, what is the rate of cyclical unemployment rate?

Answer: __________%

(Cut off at the first decimal point.)

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