Neco Model Questions Vol1 2019 Economics Question 9

Practice objective / multiple choice question 9 from the 2019 Neco Model Questions Vol1 Economics examination.

Neco Model Questions Vol1 2019 Economics Objective / Multiple Choice Medium Difficulty
Question 9 NECO_MODEL_QUESTIONS_VOL1 • 2019 • ECONOMICS • objective

In 2022 the labour market statistics for a country were as follows: frictional unemployment = \(2.5\%\), structural unemployment = \(3.0\%\), cyclical unemployment = \(1.5\%\), and the actual unemployment rate = \(8.0\%\). The total labour force is \(12\) million. Determine (a) the natural rate of unemployment, (b) the unemployment gap, and (c) the number of unemployed persons in millions (rounded to two decimal places).

Answer Options

Correct Answer A. Natural rate 5.5 %; gap 2.5 %; unemployed 0.96 million
B. Natural rate 5.5 %; gap 1.5 %; unemployed 0.72 million
C. Natural rate 5.0 %; gap 2.0 %; unemployed 0.84 million
D. Natural rate 6.0 %; gap 3.0 %; unemployed 1.08 million
Correct Answer
A
Correct Option:
Natural rate 5.5 %; gap 2.5 %; unemployed 0.96 million

About This Question

This is Neco Model Questions Vol1 2019 Economics Question 9. It is one of the objective questions from the 2019 Neco Model Questions Vol1 Economics examination.

Difficulty level: Medium .

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