1. In September 2020 the actual unemployment in the US was 7.9%.If the natural rate of unemployment in the US was 4.5%, then the cyclical unemployment in September was

a. 4.5%

b. 3.4%

c. 7.9%

d. 12.4%

2.Ture or False. An increase in the tax on capital causes Investment to fall and r to fall in equilibrium.

3.Ture or False. A rise in interest rate (r) increases the opportunity cost of current consumption.

4.During the Great Recession unemployment rate peaked at

a. 10%

b. 20%

c. 5%

d. 15%

5.Ture or False. Structural unemployment exists in a well-functioning economy because it takes time to match workers with jobs.