Cyclical unemployment
A) is the major part of the natural unemployment rate.
B) decreases during economic expansions.
C) rises as a result of increased international competition.
D) falls when unemployment compensation payments are increased.

Question

Quizplus · Accepted Answer

Cyclical unemployment decreases during economic expansions because it is directly related to the level of economic activity. When the economy is growing, companies hire more workers to meet increased demand, leading to a decrease in cyclical unemployment.

Cyclical Unemployment