Which of the following statements is TRUE about the seasonally adjusted unemployment rate?
A) The seasonally adjusted unemployment rate is the sum of the frictional unemployment rate, structural unemployment rate, and cyclical unemployment rate.
B) The seasonally adjusted unemployment rate shows how the unemployment rate fluctuates with the various seasons.
C) The seasonally adjusted unemployment rate is the same as the natural rate of unemployment.
D) The seasonally adjusted unemployment rate is the rate computed for Fall, Spring, Summer and Winter.

Question

Quizplus · Accepted Answer

The seasonally adjusted unemployment rate is designed to remove the effects of seasonal fluctuations in employment, not to show how unemployment fluctuates with the seasons or to be computed for each season. It does not equate to the natural rate of unemployment, which is the sum of frictional and structural unemployment rates and does not typically include cyclical unemployment. The correct statement, A, indicates that the seasonally adjusted unemployment rate includes all types of unemployment: frictional, structural, and cyclical, adjusted for seasonal variations to provide a clearer view of the overall unemployment trend.

Which of the Following Statements Is TRUE About the Seasonally