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Answer: 3.1%; 7.3%
Explanation:
<em>Suppose that in an economy the structural unemployment rate is 2.2 percent, the natural unemployment rate is 5.3 percent, and the cyclical unemployment rate is 2 percent. The frictional unemployment rate is </em><em><u>3.1</u></em><em> percent and the actual unemployment rate (in this economy) is </em><em><u>7.3 </u></em><em>percent.</em>
1. Natural Unemployment rate = Structural Unemployment + Frictional Unemployment
5.3% = 2.2% + Frictional Unemployment
Frictional Unemployment = 5.3% - 2.2%
= 3.1%
2. Actual Unemployment = Cyclical Unemployment + Natural Unemployment
= 2% + 5.3%
= 7.3%
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