1. A) Unemployment rate = (Unemployed / Labor force) * 100
                                       Â
= (10 / 100) * 100
                                       Â
= 10%
B) In general, approximately the
lowest unemployment rate that can reasonably expected is 3.5% to
4.5%. Because the natural rate of unemployment is the minimum
unemployment rate. The natural rate of unemployment is the rate of
unemployment when the labour market is in equilibrium. The natural
rate of unemployment is the combination of frictional, structural,
and surplus unemployment that occurs even in a healthy economy.
