ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Cyclical
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Seasonal
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Structural
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Frictional
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Technological
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Detailed explanation-1: -Cyclical unemployment is a lack of employment as a result of changes to an economy’s business cycle. Cyclical employment is caused by job losses during downturns or contractions in an economy.
Detailed explanation-2: -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-3: -Cyclical unemployment is the main cause of high unemployment rates. It’s caused by a downturn in the business cycle. It’s part of the natural rise and fall of economic growth that occurs over time. Cyclical unemployment is temporary and depends on the length of economic contractions caused by a recession.
Detailed explanation-4: -What Is Cyclical Unemployment? Cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn. Unemployment typically rises during recessions and declines during economic expansions.