posted by Freddy on .
The economy consists of the following:
- working-age population: 20M
- full time employment: 8M
- part-time employment: 2M (1M of whom wish they had full-time jobs)
- unemployment: 1M
If 0.6M of those unemployed are frictionally, structurally, and seasonally unemployed, what is the natural rate of unemployment?
I am not too sure how to calculate the natural rate of unemployment. My best guess is use 0.4M (1M of unemployed minus 0.6M) and divide it by the labour force. Can someone help me on this question please.
And a following question asks for the cyclical unemployment. In order to do that, is it the actual unemployment rate minus the natural unemployment rate?
there is no way to calculate, as there is no "natural way". get a green card and pick produce, forget the numbers and survive.
The .6M value is the number of "natural unemployeed" persons. Unemployment rate is unemployment divided by the work force. The work force is the number of working (full or part time) plus the number that want to work. Take it from here.