The best description of the cause of "cyclical" unemployment is that

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to a downturn in the business cycle, when the level of overall economic activity falls below its potential level. This leads to a decrease in demand for goods and services, leading to a decrease in demand for labor, resulting in cyclical unemployment. Choices A, B, and C describe other forms of unemployment not related to the business cycle. While D may be true in some instances, it is not the most accurate description for cyclical unemployment.

The Best Description of the Cause of "Cyclical" Unemployment Is