ECON102: Suggested Answers to Qs for Session 1A in
1) Agree or disagree with each of the following statements and explain your answer.
a) The economy cannot be considered fully employed until measured unemployment
is less than 1% of the labor force.
b) It is possible for an economy to operate for a time with unemployment rate less that the
"natural" unemployment rate. (Also known as NAIRU, the non-accelerating inflation rate of
a) What is the difference between structural, frictional and cyclical unemployment?
How are these three types of unemployment related to the concept of full employment?