________ is the difference between the actual level of unemployment and the level of unemployment in normal times,when the economy is neither in a boom nor in a recession.

Question

Quizplus · Accepted Answer

Cyclical unemployment is the difference between the actual unemployment rate and the natural rate of unemployment, which is the rate that occurs when the economy is at full employment and there is no cyclical unemployment. Cyclical unemployment is caused by fluctuations in the business cycle, as the economy goes through periods of expansion and recession. During a recession, the unemployment rate rises above the natural rate, reflecting the decrease in economic activity and decrease in demand for goods and services, which leads to job loss.

________ Is the Difference Between the Actual Level of Unemployment