If the cyclical unemployment rate is negative,then the
A) natural unemployment rate is less than the actual unemployment rate in the economy.
B) natural unemployment rate is greater than the actual unemployment rate in the economy.
C) structural unemployment rate is greater than the frictional unemployment rate.
D) structural unemployment rate is less than the frictional unemployment rate.
E) a and d

Question

Quizplus · Accepted Answer

When the cyclical unemployment rate is negative, it means the economy is operating above its potential, leading to an actual unemployment rate that is lower than the natural unemployment rate. This does not directly relate to the comparison between structural and frictional unemployment rates.

If the Cyclical Unemployment Rate Is Negative,then the