ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Rising unemployment
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High growth in GDP
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Rising inflation
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Rapid rises in consumption
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High employment
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Detailed explanation-1: -Low consumer demand creates cyclical unemployment. Companies lose too much profit when demand falls. If they don’t expect sales to pick up anytime soon, they must lay off workers. The higher unemployment causes consumer demand to drop even more, which is why it’s cyclical.
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 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-4: -The three main components are frictional, structural, and surplus unemployment.