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RoseWind [281]
3 years ago
11

If the structural unemployment rate is 3%, the frictional unemployment rate is 2%, and the cyclical unemployment rate is 4%, the

n the natural rate of unemployment is 9%.
True

False
Business
1 answer:
Damm [24]3 years ago
5 0

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.

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3 0
3 years ago
Doris recently started her position at Monro Company. The company uses the dollar-value LIFO inventory method. On her first day
Furkat [3]

Answer

2

Explanation:

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3 years ago
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Agata [3.3K]

Answer:

C) the safety and soundness of the financial system in aggregate.

Explanation:

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The "too big to fail" policy is an example of macroprudential regulation.

8 0
3 years ago
A compromise can only be reached when ______.
Sergio [31]
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4 0
4 years ago
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