When cyclical unemployment increases and other things remain the same, .
A) the amount of structural unemployment decreases
B) the amount of frictional unemployment increases
C) the natural unemployment rate does not change
D) the natural unemployment rate increases

Question

Quizplus · Accepted Answer

Cyclical unemployment is related to the business cycle and does not affect the natural rate of unemployment, which is the sum of structural and frictional unemployment.

When Cyclical Unemployment Increases and Other Things Remain the Same