the structral unemployment rate is 1.5% It is assumed that, in the LONG-RUN, ___
ID: 1228390 • Letter: T
Question
the structral unemployment rate is 1.5%
It is assumed that, in the LONG-RUN, ___price adjusts so output is at potential output prices are sticky the structural unemployment rate is greater than the natural unemployment rate the cyclical unemployment rate is positive output adjusts to meet demand while price remains constant If the actual unemployment rate is 5.5% and if the natural unemployment rate is 4%, then the___cyclical unemployment rate is 1.5% cyclical unemployment rate is 2% cyclical unemployment rate is 15% frictional unemployment rate is 2%Explanation / Answer
Answer 9:
Option A. In the long run, the aggregate supply curve is vertical at the level of potential output. Thus, there is no change in output and only price adjusts. Thus, price adjusts so the output is at potential output.
Answer 10:
Option A. Natural unemployment rate is combination of frictional and structural unemployment rate. When the economy is not at the natural rate of unemployment, then it experiences cyclical unemployment given bh the difference between actual unemployment rate and natural rate of unemployment.
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