Suppose you read the following headline in the Wall StreetJournal: “Brisk Jobs Growth Puts Fed on Notice” (3/7-8/15, p. A1),and suppose in the article you read that the Labor Department’s“official” “unemployment rate [U3] fell [in February] to 5.5% …”Ceteris paribus, one would reasonably expect the:
A. Natural Rate to equal the U-4 rate plus the U-3 rate.
B. Department’s U-4 rate to be greater than 5.5%.
C. Department’s U-6 rate to be less than 6%.
D. Natural Rate to equal the U-4 rate minus the U-3 rate
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