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Cyclical unemployment a. has a different explanation than does the natural rate of unemployment. b. refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment. c. is closely associated with short-run ups and downs of economic activity. d. all of the above are correct.

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JonHenderson55

The correct answer is:   [D]:     "all of the above are correct."

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         "Cyclical unemployment:

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  •    [A]:   "has a different explanation than does the natural rate of unemployment."
  •    [B]:  "refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment."
  •    [C]:   "is closely associated with short-run ups and downs of economic activity."

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 →  So;  the correct answer is:

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 →   Answer choice:   [D]:   "all of the above are correct."

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The correct option is  d. all of the above are correct.

The following information should be considered:

  • It means the year-to-year fluctuation in unemployment.
  • It is different from the natural rate of unemployment.
  • It is closely related to the short run ups and down of the economic activity.

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