Question

Suppose that the natural rate of unemployment during the Great Depression and the Great Recession was 5%. a. During the worst part of the Great Depression, cyclical unemployment was equal to 26 %. b. During the worst part of the Great Recession, cyclical unemployment was equal to 5

Answer 1

The correct answer is a: During the worst part of the Great Depression, cyclical unemployment was equal to 26%. As,

Step-by-step explanation:

Cyclical unemployment depends on the economic cycle that a country's economy is going through at a given time. In stages of recession or crisis, cyclical unemployment increases while in phases of expansion it decreases.