Questions: a. What is the relationship between the natural rate of unemployment and frictional, structural, and cyclical unemployment?
b. What would happen to both unemployment and the normal rate of unemployment if:
i. cyclical unemployment increases.
ii. frictional unemployment increases.
iii. structural unemployment falls and cyclical unemployment rises by the same amount.
iv. structural unemployment increases and cyclical unemployment decreases by a larger amount.
v. frictional unemployment decreases and structural unemployment increases by the same amount.