Cyclical unemployment
A) is caused by changes in the business cycle.
B) results from imperfect search activities in matching qualified employees with employers.
C) results from institutional factors that make it difficult for some workers to find jobs.
D) will probably go up as a result of improvements in online job searching.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by changes in the business cycle, specifically the contraction phase where there is a decrease in overall economic activity leading to a decrease in demand for labor.

Cyclical Unemployment