Cyclical unemployment is primarily caused by
A) a large proportion of youthful workers in the labor force.
B) fluctuations in aggregate demand.
C) a lack of training on the part of job seekers.
D) the failure of job seekers to search adequately for the available jobs.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by fluctuations in aggregate demand, which lead to changes in production levels and ultimately layoffs or hiring. As the economy goes through cycles of growth and contraction, the demand for labor fluctuates accordingly, resulting in periods of high or low unemployment.

Cyclical Unemployment Is Primarily Caused by