ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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cyclical unemployment
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frictional unemployment
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structural unemployment
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seasonal unemployment
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Detailed explanation-1: -Cyclical unemployment occurs with changes in economic activity over the business cycle. During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs being available for those who want to work.
Detailed explanation-2: -Cyclical unemployment is the number of people out of work as a result of a temporary setback in the economy, such as a recession or change in a business cycle.
Detailed explanation-3: -Who is in the labor force? The “labor force include those who are employed plus those who are unemployed.
Detailed explanation-4: -Cyclical unemployment is caused by fluctuations in economic activity. The unemployment rate is the percentage of people in the labor force who are both able to and looking for work but who cannot find jobs. Keynesian economists believe: government can implement policy proposals that can positively impact the economy.