The costs of cyclical unemployment can be minimized by
A) providing training for individuals who have lost their jobs and who want a new career.
B) providing training for individuals who have a job.
C) providing training for new entrants into the labor force.
D) keeping the economy on a steady, low-inflationary growth path.

Question

Quizplus · Accepted Answer

By keeping the economy on a steady, low-inflationary growth path, the likelihood and duration of cyclical unemployment can be reduced. This can be achieved through policies that promote economic stability, such as countercyclical fiscal and monetary policies. Providing training can help individuals who lose their jobs, but it is not a solution to reducing the overall level of cyclical unemployment. Providing training for those with a job or new entrants may reduce frictional unemployment, but it does not address cyclical unemployment.

The Costs of Cyclical Unemployment Can Be Minimized by