ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cyclical unemployment is the impact of economic recession or expansion on the total unemployment rate . Cyclical unemployment generally rises during recessions and falls during economic expansions and is a major focus of economic policy.

Detailed explanation-2: -Cyclical unemployment can be caused by a recession, which is a period of negative economic growth. Cyclical unemployment can also be caused by downturns in a business cycle in which demand for goods and services decreases over time.

Detailed explanation-3: -Cyclical unemployment is a type of unemployment where labor forces are reduced as a result of business cycles or fluctuations in the economy, such as recessions (periods of economic decline).

Detailed explanation-4: -Cyclical recessions and economic depressions have always been an integral part of the market economy in the last five centuries. With each contracting cycle occurring on average every five to ten years within longer cycles of structural expansion of contraction, capital becomes more concentrated.

Detailed explanation-5: -Unemployment increases during business cycle recessions and decreases during business cycle expansions (recoveries). Inflation decreases during recessions and increases during expansions (recoveries).