The cyclical unemployment rate is defined as the __________ unemployment rates.
A) sum of the structural and the frictional
B) difference between the structural and the frictional
C) difference between the existing (actual)and the natural
D) sum of the natural and the frictional

Question

Quizplus · Accepted Answer

Cyclical unemployment is the deviation of actual unemployment from the natural rate of unemployment. Natural unemployment is made up of structural and frictional unemployment, but cyclical unemployment is specifically the difference between the actual rate of unemployment and the natural rate. Therefore, the correct choice is C.

The Cyclical Unemployment Rate Is Defined as the __________ Unemployment