Cyclical unemployment
A) is always present in an economy.
B) is higher during an expansion.
C) fluctuates over the business cycle.
D) decreases during a recession.

Question

Quizplus · Accepted Answer

Cyclical unemployment is unemployment that occurs as a result of fluctuations in the business cycle. It is higher during a downturn or recession, and decreases during expansions. Therefore, option C, which states that cyclical unemployment fluctuates over the business cycle, is the most accurate answer.

Cyclical Unemployment