The economy is booming. GDP is growing at a rate of 6% per year, well above the average growth rate. Under these circumstances, which of the following types of unemployment is likely to have a rate less than or equal to zero?
A. Structural unemployment
B. None of the choices
C. Cyclical unemployment
D. All three choices
E. Frictional unemployment
Help with an econ problem on unemployment?loan rates
Structural unemployment happens when the economy shrinks and there aren%26#039;t enough jobs to reach full employment. Cyclical unemployment is in sync with business cycles so thats the one likely to be near zero. There%26#039;s always frictional unemployment because people get fired and there%26#039;s almost always structural because we never reach full employment.
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