Answer:
False
Explanation:
In this scenario, the natural rate of unemployment would be 5% = 3% of frictional unemployment plus 2% of cyclical unemployment. The other type of unemployment that is part of the natural rate is not referenced in the question (surplus unemployment).
Cyclical unemployment is not added up because it is not part of natural unemployment.
In fact, what natural unemployment basically is, is unemployment that does not depend on business cycle, that is not cyclical. In that sense, cyclical unemployment is totally the opposite to natural unemployment, and you only reach a rate of natural unemployment, when cyclical unemployment is eliminated in a healthy economy.
<span>As one increases the
number of periods used in the calculation of a moving average, l<span>ess
emphasis is placed on more recent data. Therefore the answer is letter B. This
is because moving average is derived from successive segments of a series of
values. As the number of periods increase, the effect of recent data gets less
significant.</span></span>
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