The kind of unemployment that results when actual real GDP is less than potential GDP is known as
Unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a decline in overall economic activity, resulting in a situation where actual real GDP falls short of potential GDP. This occurs during economic downturns and recessions when businesses may lay off workers or reduce their hours to adjust to a weaker demand for goods and services.

The Kind of Unemployment That Results When Actual Real GDP