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Answer to Question #47821 in Macroeconomics for Brandon

Question #47821
The structural unemployment rate is 1.3 percent, the frictional unemployment rate is 2.1 percent, and the current unemployment rate is 4.9 percent. The economy is in
Expert's answer
If Unemployment rate > natural rate of unemployment, then a recessionary gap exist.
Natural unemployment = Frictional unemployment + Structural unemployment = 1.3+2.1 = 3.4
4.9 > 3.4
So, if the structural unemployment rate is 1.3 percent, the frictional unemployment rate is 2.1 percent, and the current unemployment rate is
4.9 percent. The economy is in a recessionary gap producing less than Natural Real GDP

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