In Canada, the following equation is estimated for the period 1970-2012: t - t-1 = 3.2% - 0.4ut . In the United States, the following equation is estimated for the period 1970-2012: t - t-1 = 3.2% - 0.5ut . Use this information to answer the following questions:

The estimated natural rate of unemployment in the United States is approximately ________, which is ________ than in Canada.

A) 1.0%; higher B) 2.4%; higher C) 1.6%; lower D) 1.6%; higher E) 1.0%; lower

Can you show me what formula was used to calculate this