1. List the characteristics that must exist for one to be classified as unemployed
2. How is the unemployment rate calculated, illustrate using the example: Total population 1550; Employed 750; discouraged workers 30; frictional unemployed 100; cyclical unemployed 130; structural unemployed 150; part-time workers 75; marginally attached workers 80.
3. Define the natural rate of unemployment and what is the GDP gap if the level of unemployment is 4% above the natural rate?
5. What is the duration of unemployment, and why is it important?
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