Question

The actual unemployment rate is equal to the natural rate of unemployment, the share of unemployment that is independent of the business cycle, plus cyclical unemployment, the share of unemployment that depends on fluctuations in the business cycle.

a true
b false

Answer 1

The actual unemployment rate is equal to the natural rate of unemployment plus cyclical unemployment.

Step-by-step explanation:

The statement is true. The actual unemployment rate is equal to the natural rate of unemployment plus cyclical unemployment. The natural rate of unemployment is the rate of unemployment that would exist even when the economy is neither in a recession nor booming. It includes frictional unemployment, which occurs when people change jobs or are temporarily out of work, and structural unemployment, which occurs when demand permanently shifts away from certain job skills.