Most economists agree that _____ unemployment is the area in which public policymakers can have their greatest impact.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to changes in the business cycle and is typically caused by a lack of demand for goods and services in the economy. Public policymakers can use macroeconomic policies, such as monetary or fiscal policy, to stimulate demand and decrease cyclical unemployment. While policymakers can also address other types of unemployment, cyclical unemployment presents a pressing issue that policymakers can directly impact through policy interventions.

Most Economists Agree That _____ Unemployment Is the Area in Which