True or False: This economy is not currently at its natural rate of unemployment. True False
Natural rate of unemployment is the unemployment which is the sum of the frictional unemployment and structural unemployment. It also occurs in the economy when the cyclical unemployment is zero and when output is equal to full level of employment. The table given in the question shows that frictional unemployment is 3.9. Cyclical is 0. Structural unemployment is 0.9. Total unemployment is4.8. This situation shows that the economy is currently at the natural rate of unemployment since the cyclical unemployment is 0.