Question

if the frictional rate of unemployment is 1.45%, the structural rate of unemployment is 2.3%, and the total unemployment rate is 6%, then we can conclude that: o the labor force participation rate has fallen significantly. o there is 2.25% actual unemployment. o the equilibrium rate of unemployment is 3.75%. o the economy is experiencing an economic boom.

Explanation:

The natural rate of unemployment is the sum of frictional and structural unemployment. The actual unemployment rate is compared to the natural rate to assess the state of the economy. A lower - than - natural actual unemployment rate (2.25% actual vs. sum of 1.45% frictional and 2.3% structural which is 3.75%) indicates an economic boom as it suggests more jobs are available than in a normal state of the economy.

Answer:

The economy is experiencing an economic boom.