Can cyclical unemployment ever be zero?

If so, then does unemployment have to be 0%?

Aleconomixt2013-10-22T23:05:59Z

Favorite Answer

First you have to determine potential output from PPF and for that you mist know productivity, labor employed and capital used. Historical data could be available for K and L but to relate to A is difficult as there is no standard measure. Well, you can assume/know cumulative effect of automation and trained labor and better infrastructure like transport, banking, laws etc. and then can assert value of A.

Know what I am arriving at ? All these numbers we read are fake.
When government says they cannot reduce %U below 5% that being NAIRU , accept that.
Those theorists in universities ,after all, are fed by companies who always want some unemployment.

Anonymous2013-10-23T01:30:17Z

Yes, when business cycle is on the peak. But unemployment will not be zero, because seasonal, structural and frictional unemployment is still there.