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If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment

  1. If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment of 2 percent.

What is the actual rate of unemployment?

b. If the economy currently has a frictional unemployment rate of 2 percent, structural unemployment of 2 percent, seasonal unemployment of 0.5 percent, and cyclical unemployment of 2 percent.

What is the natural rate of unemployment?

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c. What happens to the natural rate of unemployment if structural unemployment falls to 1.5 percent with other types of unemployment unchanged from question 1?

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