The economy is booming. GDP is growing at a rate of 6% per year, well above the average growth rate. .........

Question

The economy is booming. GDP is growing at a rate of 6% per year, well above the average growth rate. Under these circumstances, which of the following types of unemployment is likely to have a rate less than or equal to zero?

A. Frictional unemployment

B. None of the other three choices

C. Cyclical unemployment

D. Structural unemployment

Answer 1

Structural Unemployment

Answer 2

"C" is right one. Booming economy is at top of business cycle.