Question

8. Use the table below to answer the next four questions.

Year	Employed	Structural	Frictional	Cyclical	Unemployed	Unemployment Rate
2003	1800	50	100	50
2004	2400	100	100			4%
2005		170	150	180		20%
2006	2660	75		-35		5%

8. Determine cyclical unemployment for 2004.

Group of answer choices

100

Cannot be determined without more information

0

-100

9.Use the table below to answer the next four questions.

Year	Employed	Structural	Frictional	Cyclical	Unemployed	Unemployment Rate
2003	1800	50	100	50
2004	2400	100	100			4%
2005		170	150	180		20%
2006	2660	75		-35		5%

9. Determine frictional unemployment for 2006.

Group of answer choices

0

100

200

Cannot be determined without more information

Answer 1

8. -100

unemployment rate = Unemployed / (Employed+unemployed)

let unemployed be x. The equation can be re-written as,

0.04 = x/ (2400 + x) or, 0.04(2400 + x) = x

96 + 0.04x = x; 96 = 0.96x; so, x = 100 Total unemployed = 100

cyclical unemployment = Total Unemployed - structural unemployment - frictional unemployment

= 100 - 100 - 100

= -100

9. 100

unemployment rate = Unemployed / (Employed+unemployed)

let unemployed be x. The equation can be re-written as,

0.05 = x/ (2660 + x) or, 0.05(2660 + x) = x

133 + 0.05x = x; 133 = 0.95x; so, x = 140 Total unemployed = 140

frictional unemployment = Total Unemployed - structural unemployment - cyclical unemployment

= 140 - 75 - (-35) or 140 - 75 + 35

= 100