Option 1 states that when the economy grows at a slower rate than its potential, the unemployment rate rises. This statement is correct because when an economy is not growing as fast as it could, businesses may not be expanding or hiring as much, leading to increased unemployment.

Option 2 states that structural employment occurs when jobs are eliminated by changes in the demand for specific goods or due to automation. This statement is also correct. Structural unemployment refers to the mismatch between the skills and qualifications of job seekers and the available job opportunities. When technological advancements lead to automation or changes in demand affect certain industries, it can result in job losses and structural unemployment.

Option 3 states that a recession in the economy leads to cyclical unemployment. This statement is correct. Cyclical unemployment occurs when there is a downturn in the business cycle, causing overall economic activity to decrease and leading to job losses. During a recession, businesses may struggle, leading to layoffs and an increase in cyclical unemployment.

Option 4 states that at full employment, the measured unemployment rate is negative. This statement is not correct. At full employment, there is no cyclical unemployment, but there can still be frictional and structural unemployment. The measured unemployment rate cannot be negative, as it is calculated by dividing the number of