Government statisticians have estimated that . frictional unemployment is 3.5%; and structural unemployment is 3.0%. If they have estimated that cyclical unemployment is currently -1.9%, what is their estimate for the natural rate of unemployment?

Scenario 1. Assume that frictional unemployment is 25; structural unemployment is 50; cyclical unemployment is 150; discouraged workers = 75; employed workers = 750; underemployed workers = 200. Use this information to answer the following 5 questions.Refer to Scenario 1.  Is the economy at full employment?   Question 15 options:   a)  Yes, because the unemployment rate is below 10%   b)  No, because the unemployment rate exceeds the natural rate of unemployment   c)  No, because cyclical unemployment exists in the economy   d)  Answers B and C are both correct

What is the unemployment rate in an economy where the entire adult population can be categorized as follows: • 32 million people employed • 2 million people unemployed • 1 million discouraged workers, and • 1 million people who are either students, homemakers, retirees, or other people not seeking employment. 6.3% 5.6% 5.9% 4.8%

There is an on‐going debate on how unemployment benefits affect the unemployment rate. In the context of the Mortensen‐Pissarides model, unemployment benefits are represented by the variable b. Explain carefully how an increase in b affects each equilibrium condition (Beveridge curve, vacancy supply condition, and wage setting curve.) How is the steady‐state unemployment rate impacted by an increase in b? Use the simulation tool here, https://www.briancjenkins.com/dmp‐model/simulation‐tool.html, to check your answer.