Cyclical unemployment results from
A) a deﬁciency of spending on goods and services.
B) the decreasing relative importance of goods and the increasing relative importance of services in the U.S. economy.
C) the everyday dynamics of a free labor market, with workers voluntarily changing jobs.
D) technological change.

Question

Quizplus · Accepted Answer

Cyclical unemployment results from a deficiency of spending on goods and services due to an economic downturn or recession. When demand for goods and services decreases, businesses may need to lay off workers, resulting in cyclical unemployment.

Cyclical Unemployment Results from