Question

In the economy of​ Cycladia, the total unemployment rate is equal to 11.0 ​percent, the structural unemployment rate is 2.42.4 ​percent, and the frictional unemployment rate is 4.4 percent. The cyclical unemployment rate equals ____ percent. ​(Enter your response rounded to one decimal​ place.)

Answer 1

The cyclical unemployment rate in the economy of Cycladia is 4.2%.

Step-by-step explanation:

The cyclical unemployment rate in the economy of Cycladia can be calculated by subtracting the sum of structural and frictional unemployment rates from the total unemployment rate.

In this case, the total unemployment rate is 11.0%, the structural rate is 2.4%, and the frictional rate is 4.4%.

So, to find the cyclical unemployment rate, we subtract 2.4% and 4.4% from 11.0%, resulting in a cyclical unemployment rate of 4.2%.