If the Natural Rate of Unemployment Is 5

question 141

Multiple Choice

If the natural rate of unemployment is 5.2 percent and the actual rate of unemployment is 5.7 percent,then by definition there is

• A)cyclical unemployment amounting to 0.5 percent of the labor force.
• B)frictional unemployment amounting to 0.5 percent of the labor force.
• C)structural unemployment amounting to 0.5 percent of the labor force.
• D)search unemployment amounting to 0.5 percent of the labor force.

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Definitions:

Wage Differentials

The variation in wage rates paid to different groups of workers, often based on skill, location, industry, or job function.

Human Capital

The stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Personal Prejudice

An unfounded or irrational bias towards individuals or groups based on characteristics such as race, gender, religion, or sexual orientation.

Demand for Plumbers

The need or desire for plumbing services in a market, which can vary based on factors like housing development and maintenance requirements.