Historical data shows 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%. Which of the following statements is correct regarding these two short recessions?
a. The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001.
b. Both the actual unemployment rate and cyclical unemployment were higher in 2001.
c. The actual unemployment rate was higher in 2001, but cyclical unemployment was higher from 1990-1991.
d. Both the actual unemployment rate and cyclical unemployment were higher during the recession of 1990-1991.

a. The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001.

Explanation:

Unemployment is defined as the number of people in a population that are willing to work and seeking for jobs but do not have employment.

Natural unemployment is defined as the normal process of leaving jobs and getting jobs in a situation when there is full employment.

Cyclical unemployment is created by recessions and booms.

Actual unemployment = Natural rate + Cyclical rate

Cyclical unemployment= Actual rate - Natural rate

In the first economy

Cyclical rate = 7 - 5.9= 1.1%

In the second economy

Cyclical rate= 6 - 4.8= 1.2%

So actual unemployment was 7% in 1990-1991 while in 2001 it was 6%

Cyclical unemployment was 1.1% in 1990-1991, while cyclical unemployment was 1.2%

A- The actual unemployment rate was higher during the recession of 1990−1991, while cyclical unemployment was higher in 2001.

Explanation:

There are three main types of unemployment: cyclical, structural, and frictional.   The first type is most common and occurs during a recession.  The other 2 on the other hand, constitute the natural unemployment rate.

Actual rate = cyclical unemployment rate + natural unemployment rate

In 1990-19991,

Cyclical unemployment = 7% - 5.9% = 1.1%

In 2001,

Cyclical unemployment = 6% - 4.8% = 1.2%

From this, we can see that the actual unemployment was higher in 1990=1991 while the cyclical unemployment was higher in 2001

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer90,000;