ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a deficiency of aggregate spending.
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the decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy.
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the everyday dynamics of a free labor market.
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technological change.
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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 result of a contraction in economic growth, which causes businesses to lay off workers and leads to an increase in the jobless rate.
Detailed explanation-3: -When there is a rise in cyclical unemployment caused by a recession, it is considered demand-deficient unemployment and addressed by demand-side policies. During a downturn, or recession, aggregate demand declines: household, business, government, and foreign sectors buy fewer goods and services.
Detailed explanation-4: -Cyclical unemployment is related to demand deficient unemployment and often used interchangeably. It refers to how unemployment changes with the economic cycle. When the economy is booming, jobs are created, and unemployment falls.
Detailed explanation-5: -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.