If the natural rate of unemployment in a country is 6 percent and the unemployment rate in the country is 8 percent,the cyclical unemployment in the country must be ________.

Question

Quizplus · Accepted Answer

The natural rate of unemployment indicates the minimum sustainable rate of unemployment in an economy, which includes frictional and structural unemployment. 
Therefore, the difference between the actual rate of unemployment (8%) and the natural rate of unemployment (6%) represents the cyclical unemployment. 
Hence, the cyclical unemployment in the country must be 2 percent (8% - 6% = 2%).

If the Natural Rate of Unemployment in a Country Is