The economy in a particular country is booming. Real GDP is growing at a rate of 6% per year, well above the average growth rate. Under these circumstances, which of the following types of unemployment is most likely to be the lowest?

Question

Quizplus · Accepted Answer

Cyclical unemployment is related to the economic cycle, and during a booming economy, it is typically at its lowest because there is high demand for goods and services, leading to more job creation.

The Economy in a Particular Country Is Booming