Question

question 8 (2 points)
cyclical unemployment
is always a constant amount of unemployment.
is higher during an expansion.
decreases during a recession.
fluctuates over the business cycle.
fluctuates but not in response to the business cycle.
question 9 (2 points)
full employment means that
the unemployment rate is below 6 percent.
there is no cyclical unemployment.
the unemployment rate is zero.
the frictional unemployment rate is equal to the structural unemployment rate.
there is no frictional unemployment.

Explanation:

Question 8

Cyclical unemployment is related to the business cycle. During expansions (economic growth), cyclical unemployment decreases as more jobs are created. During recessions (economic downturns), it increases. It is not a constant amount. Options about it being higher during expansion or decreasing during recession are wrong. Also, it does respond to the business cycle.

Full - employment does not mean zero unemployment. There will always be frictional (people in between jobs) and structural (mismatch between skills and jobs) unemployment. It means there is no cyclical unemployment. The unemployment rate being below 6 percent is an arbitrary number and not the definition. Frictional and structural unemployment rates being equal is not the definition of full - employment.

Answer:

fluctuates over the business cycle.

Question 9