Suppose the Economy Is Experiencing Frictional Unemployment of 1 Percent

question 88

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

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Definitions:

Date of Payment

The date of payment refers to the specific day a payment was made or is scheduled to be made for transactions, bills, or invoices.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Retained Earnings

The portion of net earnings not distributed as dividends to shareholders but retained by the company to reinvest in its core business or to pay debt.

Net Income

The total profit of a company after all expenses, taxes, and costs have been deducted from total revenue.