Question

According to the Bureau of Labor Statistics, the actual unemployment rate was 8.3% in February 2012 and the natural rate of unemployment was 5.2%. The _____ unemployment rate was _____%.

Answer 1

According to the Bureau of Labor Statistics, the actual unemployment rate was 8.3% in February 2012 and the natural rate of unemployment was 5.2%. The cyclical unemployment rate was 3.1%.

Explanation:

Unemployment is when an individual who is able to work and is also willing to work at the wage rate which is prevailing in the market, does not get work. There are some types of unemployment like cyclical, structural, frictional and so on.

Cyclical unemployment is the rate of unemployment that occurs in the different phases of the trade cycle. Because of high rate of actual unemployment rate in 2012, the cyclical rate of unemployment was also around 3%.