Cyclical unemployment is equal to zero when:

A. actual GDP and potential GDP are equal.
B. there is no recessionary gap.
C. there is no expansionary gap.
D. frictional unemployment equals structural unemployment.

Answer: A

Economics

You might also like to view...

Which of the following would be primarily determined in factor markets? a. The number of computers produced

b. The wage rates for high school teachers. c. The price of automobiles. d. Sales tax revenues.

Economics

Since World War II,

a. air pollution has worsened in most U.S. cities. b. many new pollutants have been introduced or identified. c. the federal government has reduced its reliance on economic incentives as a means of reducing pollution. d. All of the above are correct.

Economics