If the existing unemployment rate is 6.2 percent and the natural unemployment rate is 4.5 percent,the cyclical unemployment rate is ________ percent.
A) 10.7
B) 5.35
C) -1.7
D) 1.7

Question

Quizplus · Accepted Answer

The cyclical unemployment rate is the difference between the current unemployment rate and the natural unemployment rate.

Cyclical unemployment rate = Current unemployment rate - Natural unemployment rate

= 6.2% - 4.5%

= 1.7%

Therefore, the best choice is D) 1.7% as it represents the cyclical unemployment rate.

If the Existing Unemployment Rate Is 6