When cyclical unemployment is zero,
A) the unemployment rate equals the natural unemployment rate.
B) cyclical and frictional unemployment are zero.
C) structural unemployment is zero.
D) frictional unemployment is zero.

Question

Quizplus · Accepted Answer

When cyclical unemployment is zero, it means that there is no deviation from the natural rate of unemployment. Therefore, the unemployment rate equals the natural rate of unemployment, which includes structural and frictional unemployment. So, the best choice is A.

When Cyclical Unemployment Is Zero