What is the difference between natural and cyclical unemployment?

What is the difference between natural and cyclical unemployment? Natural Rate of Unemployment: unemployment rate consistent with full employment = frictional rate + structural rate = u*. Cyclical Unemployment: actual rate of unemployment – natural rate of unemployment = u – u*. The cyclical rate of unemployment is the unemployment created by recessions and booms. … Continue reading What is the difference between natural and cyclical unemployment?