The primary factor leading to cyclical unemployment is when
A) some workers do not have marketable job skills.
B) the level of overall economic activity fluctuates.
C) businesses often discriminate in their hiring practices on the basis of age, sex, and race.
D) workers quit their jobs in order to look for higher paying employment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by fluctuations in overall economic activity, such as a recession or economic downturn. When the economy slows down, businesses may lay off workers or reduce hiring, leading to higher levels of unemployment. This type of unemployment is not caused by individual factors like lacking job skills or discrimination in hiring practices.

The Primary Factor Leading to Cyclical Unemployment Is When