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Use the table below to answer the following questions: Labor Force of an Economy Labor Force Number of People (millions) Employed 157.3 Structurally unemployed 5.
Use the table below to answer the following questions: Labor Force of an Economy Labor Force Number of People (millions) Employed 157.3 Structurally unemployed 5. 2 Cyclically unemployed 5.3 Frictionally unemployed 2.9 Instructions: Round your answers to two decimal places. a. Calculate the actual unemployment rate and the natural rate of unemployment for this economy. Actual rate of unemployment: % Natural rate of unemployment: % b. Now assume 1.7 million cyclically unemployed workers become employed. At the same time, 0.5 million employed workers become structurally unemployed. Calculate the unemployment rate and the natural rate of unemployment for this economy. Actual rate of unemployment: % Natural rate of unemployment:The following table includes information on the unemployment rates among workers. Unemployment Rates Among Workers Type of Unemployment Rate of Unemployment (percent) Cyclical 3.5% Discouraged 2.0 Frictional 2.5 Structural 5.7 Instructions: Round your answers to one decimal place. a. What is the actual unemployment rate? % b. What is the natural rate of unemployment? 9%
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