Suppose the Economy Is Experiencing Frictional Unemployment of 1 Percent

question 102

Multiple Choice

Suppose the economy is experiencing frictional unemployment of 1 percent, structural unemployment of 3 percent and cyclical unemployment of 4 percent. What is the natural unemployment rate?

• A) 7 percent.
• B) 4 percent.
• C) 5 percent.
• D) 3 percent.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, usually with voting rights.

Securities Purchased

Financial instruments like stocks, bonds, or mutual funds that have been bought and are now owned by the purchaser.

Stock Investments-Run

Stock investments-run refers to the active management or trading of stock investments over a certain period to achieve specific financial goals.

Common Stock

Equity securities representing ownership shares in a corporation, giving holders voting rights and a share in the company’s profits through dividends.