Cyclical unemployment is a result of recessions and economic downturns and is not considered a part of the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the economy and is not a normal part of the labor market. It can be reduced or eliminated through government intervention to stimulate economic growth and job creation. The natural rate of unemployment refers to the level of unemployment that exists at full employment, which includes frictional and structural unemployment but excludes cyclical unemployment.

Cyclical Unemployment Is a Result of Recessions and Economic Downturns