Which of the following situations may lead to a decrease in the level of cyclical unemployment?
A)Undesired inventory accumulation.
B)Total value of goods supplied exceeds total value of goods demanded.
C)A period of significant inflation.
D)Desired saving exceeds desired investment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the overall economic activity level. During periods of significant inflation, economies are often growing, which can lead to increased demand for labor and thus a decrease in cyclical unemployment.

Which of the Following Situations May Lead to a Decrease