Cyclical unemployment occurs when
A) individuals give up the search for employment.
B) a business cycle recession decreases employment.
C) individuals with skills no longer valued in the labor market cannot find employment.
D) individuals enter into the labor market making the rounds of potential employers.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle, which can cause firms to lay off workers during economic downturns. As a result, unemployment increases during recessions and decreases during economic booms or expansions.

Cyclical Unemployment Occurs When