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Business, 19.03.2020 08:35 Samuelmoreno4496

Historical data show that during the recession of 1990–1991, the natural rate of unemployment was about 5.9% while the actual unemployment rate was 7.0%. A decade later, during the 2001 recession, the natural rate of unemployment fell to 4.8% while actual unemployment was 6.0%. Using this information, which of the following statements is correct regarding these two short recessions? The actual unemployment rate was higher in 2001, while cyclical unemployment was higher from 1990βˆ’1991. Both the actual unemployment rate and cyclical unemployment were higher during the 2001 recession. Both the actual unemployment rate and cyclical unemployment were higher during the recession of 1990βˆ’1991. The actual unemployment rate was higher during the recession of 1990βˆ’1991, while cyclical unemployment was higher in 2001.

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