Cyclical unemployment is also known as demand- deficient unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is not enough demand for goods and services in the economy, leading to a reduction in production and, consequently, a decrease in the need for labor. This type of unemployment rises during economic downturns and falls when the economy improves, hence it is directly related to the cyclical ups and downs of the economy, making it synonymous with demand-deficient unemployment.

Cyclical Unemployment Is Also Known as Demand- Deficient Unemployment