If the Structural Unemployment Rate Is 4%, the Frictional Unemployment

question 166

True/False

If the structural unemployment rate is 4%, the frictional unemployment rate is 1%, and the cyclical unemployment rate is 3%, then the natural rate of unemployment is 5%.

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Definitions:

Equal Size

A condition or record in which groups or data sets have an identical number of elements.

Interval Level

A measurement scale that allows for the comparison of differences in quantities, where equal differences between values represent equal differences in what is being measured, but does not have a true zero point.

Frequency (f)

The number of times a particular value or class of values occurs in a data set.

Ordinal Level

A level of measurement where values can be ordered or ranked, but the intervals between values are not necessarily consistent or known.