Natural Rate of Unemployment - Cyclical unemployment

3 important questions on Natural Rate of Unemployment - Cyclical unemployment

What is the definition of cyclical unemployment?

It is the difference between total unemployment and the natural rate, u – u*.

What occurs during recessionary gaps in terms of unemployment?

Actual unemployment rate exceeds the natural unemployment rate, u > u*.

How is the actual unemployment rate characterized during expansionary gaps?

The actual unemployment rate is lower than the natural rate, u < u*.

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo