If the actual unemployment rate is 7% and the natural rate is 5%, then the cyclical rate is:
A) 2%.
B) 5%.
C) 7%.
D) 9%.

Name: If the actual unemployment rate is 7% and the natural rate is 5%, then the cyclical rate is: A) 2%. B) 5%. C) 7%. D) 9%.
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Question

Quizplus · Accepted Answer

The difference between the actual rate of unemployment and the natural rate of unemployment is the cyclical rate. In this case, the difference is 2%, as 7% (actual rate) - 5% (natural rate) = 2%.

If the Actual Unemployment Rate Is 7% and the Natural