If the Natural Rate of Unemployment Is 10% and 6

question 15

Multiple Choice

If the natural rate of unemployment is 10% and 6% of employed workers become unemployed each period,then

• A) the natural rate is declining
• B) 4% of the unemployed remain unemployed each period
• C) the labor force is expanding at a rate of 16%
• D) the outflow from unemployment occurs at a rate of 54%
• E) 60% of the unemployed find employment each period

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