Cyclical unemployment
A) decreases during an expansion.
B) grows at the same rate as potential GDP.
C) is zero at a business-cycle trough.
D) decreases during a recession.

Name: Cyclical unemployment A) decreases during an expansion. B) grows at the same rate as potential GDP. C) is zero at a business-cycle trough. D) decreases during a recession.
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Question

Quizplus · Accepted Answer

Cyclical unemployment decreases during an expansion because more jobs are created as the economy grows, reducing the number of unemployed individuals.

Cyclical Unemployment