Asked by Mariah Donnally on May 28, 2024
Verified
If the frictional unemployment rate is 2 percent,the structural unemployment rate is 3 percent,and the overall unemployment rate is 9 percent,how much is the cyclical unemployment rate?
Cyclical Unemployment Rate
The rate of unemployment caused by changes in the economic cycle, such as recessions or expansions.
Frictional Unemployment Rate
Frictional Unemployment Rate refers to the percentage of the labor force that is voluntarily moving between jobs, careers, or locations.
Structural Unemployment Rate
The long-term and chronic unemployment that exists even when the economy is at its productive best, often due to mismatches between skills and job requirements.
- Understand the relationship between unemployment rates, inflation, and cyclical unemployment.
Verified Answer
MW
Learning Objectives
- Understand the relationship between unemployment rates, inflation, and cyclical unemployment.