If the Measured Unemployment Rate Is 8% and the Natural

question 257

Multiple Choice

If the measured unemployment rate is 8% and the natural unemployment rate is 3%, then

• A) frictional unemployment is 5%.
• B) cyclical unemployment is 5%.
• C) frictional unemployment is 11%.
• D) structural unemployment is 11%.

---

Definitions:

Total Fixed Costs

The sum of all costs required to produce any output, assuming they remain constant regardless of the level of production.

Fixed Costs

are expenses that do not change in response to the level of goods or services produced by a business, like rent or salaries.

Variable Costs

Expenses that change in proportion to the production or sales figures.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor expenses.