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son4ous [18]
3 years ago
6

In the economy of​ Cycladia, the total unemployment rate is equal to 11.0 ​percent, the structural unemployment rate is 2.42.4 ​

percent, and the frictional unemployment rate is 4.4 percent. The cyclical unemployment rate equals ____ percent. ​(Enter your response rounded to one decimal​ place.)
Business
1 answer:
damaskus [11]3 years ago
4 0

Answer:

The cyclical unemployment rate is 4.2%

Explanation:

There is a natural unemployment rate which contains every unemployment rate which is cyclical unemployment plus structural unemployment plus frictional unemployment, so then in order to get cyclical unemployment we will use the below formula:

natural unemployment = Frictional unemployment + Cyclical unemployment +structural unemployment

therefore we are given the natural unemployment rate of 11%

Frictional Unemployment Rate of 4.4%

Structural unemployment rate of 2.4%

then we substitute on the above mentioned formula and solve for cyclical unemployment

11% =4.4% + Cyclical Unemployment Rate+ 2.4% then we transpose and solve for cyclical unemployment rate

11% - 4.4% -2.4% = Cyclical Unemployment Rate

4.2 % = Cyclical unemployment rate

this unemployment rate goes with the business cycle of any business in which if there is a recession in an economy it is accounted for even if there is economic growth it is accounted for.

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