________ unemployment rises and falls with economic fluctuations.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly linked to fluctuations in the economy. As the economy enters a downturn, fewer jobs are available, and people lose their jobs. As the economy improves, more jobs become available and people are rehired. Frictional unemployment is due to individuals transitioning between jobs and structural unemployment is caused by a mismatch between the skills of the workforce and the demands of the job market. Inflationary unemployment is a temporary phenomenon caused by an increase in prices.

________ Unemployment Rises and Falls with Economic Fluctuations