Question

Imagine an economy where the total rate of unemployment is 6% and the natural rate of unemployment is 3%. In this economy the cyclical rate of unemployment would be and the frictional rate of unemployment would be . (Select ?% if the rate cannot be determined from the information given.)

Answer 1

Answer:

6 percent- 3 percent= 3 percent

Explanation:

Cyclical unemployment rate  =  Current unemployment rate –  natural rate of unemployment (Frictional unemployment rate + Structural unemployment rate)