Question

Suppose the natural rate of unemployment is 5 percent, there is 2.5 percent frictional unemployment, and the actual rate of unemployment is 7 percent. Then

Answer 1

Then?

Answer 2

a. structural unemployment is 2.5 percent and cyclical unemployment is 2 percent.
b. structural unemployment is 2 percent and cyclical unemployment is 2 percent.
c. structural unemployment is 6.5 percent and cyclical unemployment is 2 percent.
d. structural unemployment is 2.5 percent and cyclical unemployment is 6.5 percent.