Suppose Economists Were Able to Measure Frictional Unemployment as 3%,cyclical

question 88

Multiple Choice

Suppose economists were able to measure frictional unemployment as 3%,cyclical unemployment as 2%,and structural unemployment as 4%.Then we would know that the NAIRU is ________ and the actual unemployment rate is ________.

• A)6%; 5%
• B)5%; 9%
• C)7%; 9%
• D)7%; 7%
• E)6%; 6%

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Definitions:

Systematic Thinking

An approach to problem-solving that considers the broader system, including interactions and relationships between its parts.

Analytical Fashion

A methodical approach to problem solving or decision making, emphasizing detailed examination and evaluation.

Rational

Based on or in accordance with reason or logic; applying logical principles to decision-making processes.

Problem Avoiders

Individuals or entities that choose to ignore or evade issues rather than facing them directly and seeking solutions.