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25. Suppose frictional unemployment is 1 percent, structural unemployment is 2 percent, cyclical unemployment is 3 percent, and unemployment due to unemployment insurance and minimum

25. Suppose frictional unemployment is 1 percent, structural unemployment is 2 percent, cyclical unemployment is 3 percent, and unemployment due to unemployment insurance and minimum wage legislation is 4 percent. Based on this information the NRU is

a) 3% or less b) 4%, 5% or 6% c) 7%, 8% or 9% d) 10% or more

26. Suppose the population over age 15 is 25 million, the participation rate is 80 percent, the number of people with full-time jobs is 16 million, and the number of people with part-time jobs is two million. If the number of discouraged workers increases by one million, what does the measured unemployment rate become?

a) 5% or less b) more than 5% but less than 10% 11

c) 10% or more but not more than 12% d) more than 12%

27. Suppose the population over age 15 is 150 million, the participation rate is 60 percent, and the unemployment rate is 10 percent. If the number of encouraged workers increases by 2 million, the participation rate becomes

a) 59% or less b) greater than 59% but less than 60%

c) 60% or more, but not more than 61% d) greater than 61%

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