The economy is booming.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 likely to have a rate less than or equal to zero?
I.Frictional unemployment
II.Cyclical unemployment
III.Structural unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment is related to the economic cycle. During a booming economy, cyclical unemployment tends to be very low or even zero, as there are more jobs available and fewer layoffs.

The Economy Is Booming