Cyclical unemployment is a consequence of:
A)a decline in aggregate spending.
B)the decreasing relative importance of goods and the increasing relative importance of services in our economy.
C)the everyday dynamics of a free labour market.
D)technological change.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is a decline in aggregate spending, as businesses are not able to sell as many goods and services, leading to job losses. This is often a result of an economic downturn, such as a recession, where consumers are spending less, leading to a decrease in demand for goods and services.

Cyclical Unemployment Is a Consequence Of