Cyclical unemployment refers to
A)how often a worker is likely to be employed during her lifetime.
B)short-run fluctuations around the natural rate of unemployment.
C)the portion of unemployment created by wages set above the equilibrium level.
D)changes in unemployment due to changes in the structural rate of unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the macroeconomic situation of an economy and occurs due to the natural ups and downs of economic cycles. It represents the short-run fluctuations in unemployment around the natural rate, which are often influenced by economic recessions or expansions.

Cyclical Unemployment Refers to