Which of the following statements is false?

a. A discouraged worker is not counted as an unemployed worker

b. The frictional unemployment rate is greater than the natural unemployment rate.

c. The natural unemployment rate is greater than the structural unemployment rate

d. The natural unemployment rate is equal to the sum of the frictional unemployment rate and the structural unemployment rate.

Solutions

Expert Solution

Answer - Option B

The frictional unemployment rate is greater than the natural unemployment rate.

This is because frictional unemployment is a part of natural rate and will never be greater than it.

The other options are true and do not represent any false information. Thus option B will be the answer

Rahul Sunny answered 1 year ago

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