47. The natural rate of unemployment is the unemployment rate when there is only:?

Question

47. The natural rate of unemployment is the unemployment rate when there is only:

A. structural unemployment.

B. frictional unemployment.

C. cyclical unemployment.

D. structural and cyclical unemployment.

E. structural and frictional unemployment.

48. The cyclical unemployment rate is zero when:

A. there is a recessionary gap.

B. there is an expansionary gap.

C. the output gap equals zero.

D. frictional unemployment equals structural unemployment.

E. the sum of frictional and structural unemployment equals zero.

Answer 1

E. structural and frictional unemployment.

A. there is a recessionary gap.

Answer 2

47. The natural rate of unemployment is the unemployment rate when there is only:

correct answer-

E. structural and frictional unemployment.

48. The cyclical unemployment rate is zero when:

C. the output gap equals zero.

Answer 3

47. The answer is E. structural and frictional unemployment.

48. The answer cannot be A. or B. because the natural rate of unemployment is the unemployment rate that prevails when cyclical unemployment is zero, so the economy has NEITHER a recessionary nor an expansionary gap.

So the correct answer is C. the output gap equals zero.