Consider the Data in Table 7

question 30

Essay

Consider the data in Table 7.3. What is the natural rate of unemployment in each of these years? Explain your answer.
Table 7.3
$$\begin{array} { c c c c } \hline & \begin{array} { c } \text { Separation } \\\text { rate }\end{array} & \begin{array} { c } \text { Finding } \\\text { rate }\end{array} & \begin{array} { c } \text { Labor } \\\text { force } \\\text { (mil) }\end{array} \\\hline 2015 & 2 \% & 20 \% & 130 \\2016 & 2.5 \% & 15 \% & 100 \\\hline\end{array}$$

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Definitions:

Creditors

Creditors are individuals or entities to whom money is owed by debtors or borrowers.

Primary Objective Test

A rule that states a writing is not needed for enforcement if the promise to pay another party’s debt is made to obtain a gain for the guarantor.

Guarantor

The promisor.

Enforceable

A characteristic of a legal agreement or obligation that allows it to be legally upheld or compelled in a court of law.