Question

What does the relationship between the unemployment rate and the natural unemployment rate tell us about cyclical unemployment?

When the unemployment rate is
than the natural unemployment rate, cyclical unemployment is

A. less; positive
B. greater, negative
C. less; negative
D. greater; is increasing

Answer 1

C. less; negative

Step-by-step explanation:

The unemployment rate=natural unemployment rate+cyclical unemployment rate

if The unemployment rate<natural unemployment rate then the cycalical rate of unemployment is negative.