The natural rate of unemployment is calculated by dividing the number of frictional and structural unemployed individuals by the sum of employed and unemployed individuals, and then multiplying by 100:
natural rate of unemployment = (frictional unemployment + structural unemployment) / (employed + unemployed) x 100
natural rate of unemployment = (6.9 + 2.2) / (160 + 15) x 100
natural rate of unemployment = 9.1 / 175 x 100
natural rate of unemployment = 5.2%
Therefore, the natural rate of unemployment is 5.2%.
employed= 160.0
unemployed= 15.0
Not in Labor Force= 78.5
the distribution of the population aged 16 and older into three groups: people who are employed, those who are unemployed, and those not in the labor force. Suppose that among the 15.0 million unemployed people, currently 6.9 million are frictionally unemployed, 5.9 million are cyclically unemployed, and 2.2 million are structurally unemployed. What is the natural rate of unemployment?
Part 2
If among the 15.0 million unemployed people, 6.9 million are frictionally unemployed, 5.9 million are cyclically unemployed, and 2.2
million are structurally unemployed, then the natural rate of unemployment is ---percent. (Enter your response rounded to one decimal place.)
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