If frictional and structural unemployment are estimated to be a combined 3%, and the unemployment rate is 7.5%, then:
a. the unemployment rate is low enough to qualify as the natural rate of unemployment.
b. cyclical unemployment is less than frictional plus structural unemployment so the goal of full employment is being met.
c. cyclical unemployment is estimated to be 4.5% implying that the economy may be in a recession.
d. the actual unemployment rate is 4.5% implying that the economy may be in a recession.
