When cyclical unemployment is equal to zero, we know that: A. The actual unemployment rate is...
Question:
When cyclical unemployment is equal to zero, we know that:
A. The actual unemployment rate is equal to the natural rate of unemployment.
B. Frictional and structural unemployment are also equal to zero.
C. The actual unemployment rate is greater than the natural rate of unemployment.
D. Frictional unemployment is less than zero while structural unemployment is greater than zero.
Cyclical Unemployment:
Cyclical unemployment rises and falls with the business cycle. This is lowest when the economy is going through a boom phase and highest when the economy is going through a slump phase.
Answer and Explanation: 1
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View this answer- The correct option is A. The actual unemployment rate is equal to the natural rate of unemployment.
When cyclical unemployment is equal to zero, the...
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Natural Rate of Unemployment: Graphs & Analysis
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Chapter 6 / Lesson 7
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Learn about the natural rate of unemployment and its effect on business. Study the unemployment rate graph and understand the analysis aspect of unemployment graphs.
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