In the long run, as a result of the increase in government spending, the price level , the quantity of output the natural level of output, and the unemployment rate the natural rate of unemployment.

Suppose the unemployment rate is 10% this month and there are 20 million officially unemployed people. Since last month's unemployment report, 2 million people found jobs but 4 million unemployed people became discouraged and stopped searching. If there were no other changes in the labor market, what was the unemployment rate last month? Show all work and formulas.

The unemployment associated with an economic downturn like those associated with the COVID pandemic, or the Great Recession are referred to as     Structural unemployment     Frictional unemployment     Natural unemployment      Cyclical unemployment

Imagine that during an expansion the U.S. economy adds 300,000 jobs. In addition, because of the improving economic conditions, the labor force increases by 200,000. Would the unemployment rate go up or down?