Statements is correct regarding these two short recessions

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Historical data show that during the recession of 1990 − 1991, the natural rate of unemployment was about 5.9 percent while the actual rate of unemployment was 7.0 percent. A decade later, during the 2001 recession, the natural rate of unemployment had fallen to 4.8 percent while actual unemployment was 6.0 percent. Which of the following statements is correct regarding these two short recessions? The actual unemployment rate was higher during the recession of 1990-1991, but cyclical unemployment was higher in 2001. Both the actual unemployment rate and cyclical unemployment were higher in 2001. The actual unemployment rate was higher in 2001, but cyclical unemployment was higher from 1990-1991. Both the actual unemployment rate and cyclical unemployment were higher during the recession of 1990-1991.

Reference no: EM131424769

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