Question

If frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 3.5%, the natural rate of unemployment is ______.

Answer 1

Based on the various rates of unemployment, the natural rate of unemployment is 5%.

What is natural unemployment?

• It represents the sum of frictional and structural unemployment.

Natural unemployment rate is therefore:

= Frictional + Structural

= 2% + 3%

= 5%

In conclusion, natural unemployment is 5%.

Find out more on natural unemployment at https://brainly.com/question/6197924.