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Which of the following is TRUE of cyclical unemployment?

Vethier 2016

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Which of the following is TRUE of cyclical unemployment?

Which of the following is TRUE of cyclical unemployment?

▸ Cyclical unemployment decreases during periods of economic boom.

▸ Cyclical unemployment is the deviation of the actual unemployment rate from the natural rate of unemployment.

▸ Cyclical unemployment increases during periods of economic boom.

▸ Cyclical unemployment is also known as frictional unemployment.

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Macroeconomics

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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Thanks for your help!!

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