Cyclical unemployment in Canada is essentially the consequence of:
A)procyclical fiscal policies.
B)a deficient level of aggregate expenditures.
C)rapid technological progress.
D)the geographic immobility of the labor force.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a deficiency in aggregate demand in the economy, which means that businesses are not selling enough goods and services to require the same level of employment as before. This can occur due to various factors, such as a decrease in consumer spending or a decline in investment. Procyclical fiscal policies (such as cuts in government spending during a recession) can exacerbate this problem, but they are not the root cause of cyclical unemployment. Rapid technological progress and the geographic immobility of the labor force can contribute to structural unemployment, but they do not explain cyclical unemployment.

Cyclical Unemployment in Canada Is Essentially the Consequence Of