Asked by Logan Tippett on Jun 12, 2024
Verified
The cyclical unemployment rate is 0 when the overall unemployment rate is
A) 15.
B) 10.
C) 5.
D) 3.
E) 0.
Cyclical Unemployment
This refers to unemployment that occurs due to fluctuations in the economy, often increasing during a recession and decreasing during an economic expansion.
Unemployment Rate
The fraction of the working population that is not employed and is on the lookout for work.
- Recognize the diverse forms of unemployment and describe their specific characteristics.
Verified Answer
TU
tauheed usmaniJun 13, 2024
Final Answer :
C
Explanation :
Cyclical unemployment is zero when the economy is at full employment, which economists often consider to be around a 5% unemployment rate. This reflects the natural rate of unemployment due to factors other than the business cycle, such as frictional and structural unemployment.
Learning Objectives
- Recognize the diverse forms of unemployment and describe their specific characteristics.