Questions: Currently in Economica, the frictional rate of unemployment is 1.0%, the structural rate of unemployment is 1.5%, and the cyclical rate of unemployment is 3.0%. In the winter, there is seasonal unemployment of 1%. In this country, the seasonally adjusted natural rate of unemployment would be considered to be %. (Round your response to one decimal place.)

To determine the seasonally adjusted natural rate of unemployment in Economica, we need to consider the frictional and structural rates of unemployment, as these are components of the natural rate of unemployment. The cyclical rate of unemployment and seasonal unemployment are not included in the natural rate of unemployment.

Given:

• Frictional rate of unemployment: \(1.0\%\)
• Structural rate of unemployment: \(1.5\%\)
• Cyclical rate of unemployment: \(3.0\%\) (not included in the natural rate)
• Seasonal unemployment: \(1.0\%\) (not included in the natural rate)

The natural rate of unemployment is the sum of the frictional and structural rates of unemployment.

\[ \text{Natural rate of unemployment} = \text{Frictional rate} + \text{Structural rate} \]

\[ \text{Natural rate of unemployment} = 1.0\% + 1.5\% = 2.5\% \]

Therefore, the seasonally adjusted natural rate of unemployment in Economica is \(2.5\%\).

Your response: The seasonally adjusted natural rate of unemployment would be considered to be \(2.5\%\).