Cyclical unemployment
A) occurs when technology improvements change job requirements.
B) may increase or decrease during an expansion.
C) fluctuates over the business cycle.
D) is due mainly to job leavers.

Question

Quizplus · Accepted Answer

Cyclical unemployment fluctuates over the business cycle. It is caused by changes in the overall demand for goods and services in the economy, which affects employment levels. During periods of economic expansion, cyclical unemployment typically decreases, while during recessions it tends to increase. Choices A, B, and D do not accurately describe cyclical unemployment.

Cyclical Unemployment