According to the Bureau of Labor Statistics, the actual unemployment rate was 8.3% in February 2012 and the natural rate of unemployment was 5.2%. The _____ unemployment rate was _____%.
A) frictional; 4
B) cyclical; 3.1
C) structural; 4
D) cyclical; 14

Question

Quizplus · Accepted Answer

The difference between the actual unemployment rate and the natural rate of unemployment is known as the cyclical unemployment rate. Using the given numbers, the cyclical unemployment rate would be 8.3% - 5.2% = 3.1%.

According to the Bureau of Labor Statistics, the Actual Unemployment