Suppose that in Southlandia, frictional unemployment is 2%, structural unemployment is 3%, and cyclical unemployment is 4%. What is the natural rate of unemployment in Southlandia?
a) 2%
b) 3%
c) 5%
d) 9%
Answer: c) 5%
Economics
a) 2%
b) 3%
c) 5%
d) 9%
Answer: c) 5%