If the Unemployment Rate Is 9 Percent and the Natural

question 4

Multiple Choice

If the unemployment rate is 9 percent and the natural rate of unemployment is 5 percent, then the

• A) frictional unemployment rate is 5 percent.
• B) cyclical unemployment rate and the frictional unemployment rate together are 5 percent.
• C) cyclical unemployment rate is 4 percent.
• D) natural rate of unemployment will eventually increase.

---

Definitions:

Direct Labor-Hours

An indicator of the cumulative hours spent by workers directly engaged in the production process.

Estimated Total Manufacturing Overhead

The projected sum of all indirect costs associated with the production process, not inclusive of direct labor or materials.

Direct Labor-Hours

The cumulative hours spent by workers who are actively engaged in the production process.

Machine-Hours

The duration, typically measured in hours, that machinery is in operation for producing goods during a specific timeframe.