When unemployment rises above the natural rate,what type of unemployment exists?
A)frictional
B)seasonal
C)cyclical
D)structural

Question

Quizplus · Accepted Answer

When unemployment rises above the natural rate, it is due to a decrease in economic activity and demand for labor. This type of unemployment is called cyclical unemployment. Frictional and seasonal unemployment are not related to changes in economic activity, while structural unemployment is caused by a mismatch between the skills of workers and available job opportunities, not by changes in economic activity.

When Unemployment Rises Above the Natural Rate,what Type of Unemployment