Cyclical unemployment is the result of:
A)expansion in the economy.
B)technological change in the economy.
C)seasonal variation in the labour force.
D)a decline in total spending.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a decline in total spending in the economy, which results in reduced demand for goods and services and subsequent layoffs of workers. It is a type of unemployment that is related to fluctuations in the business cycle. Therefore, option D is the correct answer. Options A and B refer to other types of unemployment, while option C is a form of seasonal unemployment, which is not cyclical.

Cyclical Unemployment Is the Result Of