The Sum of the Frictional and Structural Rates of Unemployment

question 294

Multiple Choice

The sum of the frictional and structural rates of unemployment is the:

• A) cyclical rate of unemployment.
• B) cyclical rate of employment.
• C) natural rate of unemployment.
• D) natural rate of employment.

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Definitions:

Base Year

A reference year against which economic growth, inflation, and other economic indicators are measured to assess changes over time.

A W Phillips

An economist known for the Phillips Curve, which suggests an inverse relationship between unemployment and inflation rates.

Unemployment Rate

The quota of the working-age population that is without a job and searching for one.

Rate Of Change

A measure that determines the extent to which a quantity grows or declines over a particular period of time, often expressed as a percentage.