Gce Model Questions Vol1 2025 Economics Question 48

Practice objective / multiple choice question 48 from the 2025 Gce Model Questions Vol1 Economics examination.

Gce Model Questions Vol1 2025 Economics Objective / Multiple Choice Medium Difficulty
Question 48 GCE_MODEL_QUESTIONS_VOL1 • 2025 • ECONOMICS • objective

In Country Y, the labour force is 20 million. The total number of unemployed persons is 1.8 million, of which 0.5 million are frictionally unemployed and 0.5 million are structurally unemployed. Calculate (a) the actual unemployment rate, (b) the natural rate of unemployment, (c) the cyclical unemployment rate, and (d) the unemployment gap (the difference between actual and natural rates). Express all rates as percentages to one decimal place.

Answer Options

A. Actual rate = 8.5%, Natural rate = 5.0%, Cyclical rate = 3.5%, Unemployment gap = 3.5%
Correct Answer B. Actual rate = 9.0%, Natural rate = 5.0%, Cyclical rate = 4.0%, Unemployment gap = 4.0%
C. Actual rate = 9.0%, Natural rate = 5.0%, Cyclical rate = 3.0%, Unemployment gap = 3.0%
D. Actual rate = 9.0%, Natural rate = 4.5%, Cyclical rate = 4.5%, Unemployment gap = 4.5%
Correct Answer
B
Correct Option:
Actual rate = 9.0%, Natural rate = 5.0%, Cyclical rate = 4.0%, Unemployment gap = 4.0%

About This Question

This is Gce Model Questions Vol1 2025 Economics Question 48. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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