People actively looking for work who CANNOT find jobs because of an insufficiency of aggregate demand are examples of ________ unemployment.

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Quizplus · Accepted Answer

Cyclical unemployment occurs when there is a lack of aggregate demand in the economy, leading to a decrease in production and a lower demand for labor. People actively seeking employment but unable to find jobs due to this lack of demand are examples of cyclical unemployment. Frictional unemployment refers to short-term unemployment due to the time it takes for individuals to search for and find new jobs, while structural unemployment occurs when there is a mismatch between the skills of workers and the demand for those skills in the labor market. Inflationary and residual unemployment are not related to insufficient demand.

People Actively Looking for Work Who CANNOT Find Jobs Because