Use the following to answer questions:
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure 16-4: Actual and Natural Rates of Unemployment. In 1982, the cyclical unemployment rate was approximately:
A) zero.
B) 4%.
C) 6%.
D) 10%.

Question

Use the following to answer questions: 
-(Figure: Actual and Natural Rates of Unemployment) Refer to Figure 16-4: Actual and Natural Rates of Unemployment. In 1982, the cyclical unemployment rate was approximately:
A) zero. 
B) 4%. 
C) 6%. 
D) 10%.

Quizplus · Accepted Answer

Cyclical unemployment is the difference between the actual unemployment rate and the natural rate of unemployment. In 1982, the actual unemployment rate was about 10%, and the natural rate was about 6%. Therefore, the cyclical unemployment rate was approximately 4% (10% - 6% = 4%).

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