employed= 160.0
unemployed= 15.0
Not in Labor Force= 78.5
the distribution of the population aged 16 and older into three groups: people who are employed, those who are unemployed, and those not in the labor force. Suppose that among the 15.0 million unemployed people, currently 6.9 million are frictionally unemployed, 5.9 million are cyclically unemployed, and 2.2 million are structurally unemployed. What is the natural rate of unemployment?
Part 2
If among the 15.0 million unemployed people, 6.9 million are frictionally unemployed, 5.9 million are cyclically unemployed, and 2.2
million are structurally unemployed, then the natural rate of unemployment is ---percent. (Enter your response rounded to one decimal place.)
The natural rate of unemployment is calculated by dividing the number of frictional and structural unemployed individuals by the sum of employed and unemployed individuals, and then multiplying by 100:
natural rate of unemployment = (frictional unemployment + structural unemployment) / (employed + unemployed) x 100
natural rate of unemployment = (6.9 + 2.2) / (160 + 15) x 100
natural rate of unemployment = 9.1 / 175 x 100
natural rate of unemployment = 5.2%
Therefore, the natural rate of unemployment is 5.2%.
To find the natural rate of unemployment, we need to divide the total number of unemployed individuals by the sum of employed and unemployed individuals.
Total Unemployed = Frictional Unemployed + Cyclical Unemployed + Structurally Unemployed
Total Unemployed = 6.9 million + 5.9 million + 2.2 million
Total Unemployed = 15 million
Total Employed = Employed + Total Unemployed + Not in Labor Force
Total Employed = 160 million + 15 million + 78.5 million
Total Employed = 253.5 million
Total Labor Force = Employed + Total Unemployed
Total Labor Force = 160 million + 15 million
Total Labor Force = 175 million
Natural Rate of Unemployment = (Total Unemployed / Total Labor Force) * 100
Natural Rate of Unemployment = (15 million / 175 million) * 100
Natural Rate of Unemployment = 8.57%
Therefore, the natural rate of unemployment is 8.57%.
Part 2:
The natural rate of unemployment among the 15 million unemployed people is 8.57%.
Therefore, the natural rate of unemployment is 8.6% (rounded to one decimal place).