When cyclical unemployment increases and other things remain the same, .
A) the natural unemployment rate increases
B) the amount of structural unemployment decreases
C) the amount of frictional unemployment increases
D) the natural unemployment rate does not change

Question

Quizplus · Accepted Answer

Cyclical unemployment is related to the business cycle and does not affect the natural unemployment rate, which is the sum of frictional and structural unemployment.

When Cyclical Unemployment Increases and Other Things Remain the Same