Suppose an Economist Breaks the Unemployment Rate into the Following

question 130

Multiple Choice

Suppose an economist breaks the unemployment rate into the following components: frictional (2%) , structural (1%) , and cyclical (4%) . Based on these estimates, the natural rate of unemployment is

• A) 0%.
• B) 3%.
• C) 5%.
• D) 7%.

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Definitions:

Pro-con

Weighing the positive (pro) and negative (con) aspects of a decision, argument, or proposition.

Problem-cause-solution Pattern

The problem-cause-solution pattern is a way of organizing information that identifies an issue, analyzes its causes, and proposes one or more solutions.

Comparative Advantages Pattern

A method of organizing information by comparing the strengths and weaknesses of different options.

Mnemonic Device

A tool used to improve memory by linking new information to a familiar concept or pattern.