Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the following is true? a. The economy has a full employment. b. Cyclical unemployment is negative. c. Frictional unemployment becomes zero. d. The economy is in recession.

Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the following is true? a. The economy has a full employment. b. Cyclical unemployment is negative. c. Frictional unemployment becomes zero. d. The economy is in recession.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter6: Macroeconomic Measurements, Part I: Prices And Unemployment

Section: Chapter Questions

Problem 7WNG

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Question

Suppose that the unemployment rate is equal to the natural rate of unemployment. Which of the following is true?

a.

The economy has a full employment.

b.

Cyclical unemployment is negative.

c.

Frictional unemployment becomes zero.

d.

The economy is in recession.

Definition Definition State in which an individual is without work, despite actively seeking employment opportunities. The unemployment rate refers to the percentage of the workforce that is currently unemployed. Unemployment is one of the key indicators of the conditions prevailing in an economy. It is therefore considered a barometer that points out the condition of an economy.

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