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

Question

Quizplus · Accepted Answer

The natural unemployment rate does not change when cyclical unemployment increases. Cyclical unemployment is caused by fluctuations in the business cycle, and it does not affect the structural or frictional components of unemployment.

When Cyclical Unemployment Increases and Other Things Remain the Same