Final answer:
At the equilibrium wage rate in a perfectly competitive labor market, cyclical unemployment is zero and frictional unemployment is positive, reflecting the time needed for employers and workers to find good matches.
Step-by-step explanation:
In a perfectly competitive labor market at the equilibrium wage rate, the amount of cyclical unemployment is zero because the economy is producing at potential GDP, which gives potential employers no lesser incentive to hire. In this state, the labor market will have adjusted so that the quantity demanded of labor equals the quantity supplied at the equilibrium wage. However, some unemployment still exists—this is known as frictional unemployment, which occurs as job seekers and employers need time to find a suitable match, even in robust economic times. It's important to note that economists consider frictional unemployment a normal and healthy part of a functioning labor market, and it will not reduce to zero even at equilibrium due to the dynamic nature of the labor market.