Debate on Causes of Joblessness Grows What is the cause of the high unemployment rate? One side says more government spending can reduce it. The other says its a structural problem—people who can’t move to take new jobs because they are tied down to burdensome mortgages or firms that can’t find workers with the requisite skills to fill job openings.

Source: The Wall Street Journal, September 4, 2010 Which business cycle theory would say that the rise in unemployment is cyclical? Which would say it is an increase in the natural rate? Why?