Gce Model Questions Vol1 2022 Economics Question 34

Practice objective / multiple choice question 34 from the 2022 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2022 Economics Objective / Multiple Choice Medium Difficulty
Question 34 GCE_MODEL_QUESTIONS_VOL1 • 2022 • ECONOMICS • objective

The unemployment rates in an economy are: frictional 2.5 %, structural 1.8 %, and total unemployment 7.0 %. Determine (a) the cyclical unemployment rate, (b) the natural rate of unemployment, and (c) what percentage of the total unemployment is cyclical (rounded to one decimal place).

Answer Options

Correct Answer A. Cyclical = 2.7 %; Natural rate = 4.3 %; Cyclical share ≈ 38.6 % of total
B. Cyclical = 3.2 %; Natural rate = 4.3 %; Cyclical share ≈ 46.4 % of total
C. Cyclical = 2.0 %; Natural rate = 4.3 %; Cyclical share ≈ 28.6 % of total
D. Cyclical = 2.7 %; Natural rate = 5.0 %; Cyclical share ≈ 38.6 % of total
Correct Answer
A
Correct Option:
Cyclical = 2.7 %; Natural rate = 4.3 %; Cyclical share ≈ 38.6 % of total

About This Question

This is Gce Model Questions Vol1 2022 Economics Question 34. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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