Suppose the Economy Is Experiencing Frictional Unemployment of 1 Percent

question 55

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)5 percent
• B)7 percent
• C)3 percent
• D)8 percent
• E)4 percent

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual units of production, based on estimated costs and activity levels.

Direct Labor Hours

The number of labor hours spent by workers who are directly involved in the production of goods or services.

Materials Requisitions

Documents used to request the transfer of materials from inventory for production purposes or other internal use.

Job Cost Sheets

Documents that track and record all the costs associated with a specific job or project.