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:

Hay

Dried grass used primarily as animal fodder, especially for grazing animals like cows and horses.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they end up spending.

Reservation Price

The maximum price a consumer is willing to pay for a good or service, beyond which they will choose not to purchase it.

Cost Function

A mathematical formula or equation that describes how production costs change with alterations in the volume of output.