Assume that thenatural rate of unemploymentfor Canada in 2019 was 5.7% and that theactual rate of unemploymentin 2019 was 8.5%. Note that the natural rate of unemployment is made up of three types of unemployment and the actual rate of unemployment is made of those three types of unemployment, and one additional type.

a) What is the type of unemployment that isnot includedin calculating the natural rate of unemploymentbut is includedin calculating the actual rate of unemployment? (2 marks)

b) Based on the above information, what is the rate of unemployment the type of unemployment you identified in a) above is responsible for? (2 marks)