Currently in Economica, the frictional rate of unemployment is 2.0 %, the structural rate of unemployment is 2.0 %, and the cyclical rate of unemployment is 3.5 %. In the winter, there is seasonal unemployment of 1%. In this country, the seasonally adjusted natural rate of unemployment would be considered to be nothing %.

Question

Daisy Conner

Business

21 June, 12:48

Currently in Economica, the frictional rate of unemployment is 2.0 %, the structural rate of unemployment is 2.0 %, and the cyclical rate of unemployment is 3.5 %. In the winter, there is seasonal unemployment of 1%. In this country, the seasonally adjusted natural rate of unemployment would be considered to be nothing %.

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Guapo · Answer 1

7,5%

Explanation:

natural rate of unemployment is generally comprised of 3 unemployment types: structural rate of unemployment, cyclical rate of unemployment and frictional unemployment. This state exists even in a healthy environment commercially viable as workers will always seek for new jobs. At the time they leave to seek for new jobs, that period relates to natural rate of unemployment of the country or state.

so we add, frictional rate plus structural rate plus cyclical rate to get the figure for natural rate of unemployment.