Which of the following statements is true?
A) Higher the cyclical unemployment, higher is the natural rate of unemployment.
B) Natural unemployment rate is unrelated to structural unemployment rate.
C) Cyclical unemployment rate reflects the level of economic activity.
D) Natural unemployment rate reflects cyclical unemployment rate.

Question

Quizplus · Accepted Answer

Cyclical unemployment rate varies with the level of economic activity, increasing during recessions and decreasing during expansions. This is because cyclical unemployment is directly related to the health of the economy.

Which of the Following Statements Is True