Which of the following is true?
A)Employment and unemployment are both coincident with the business cycle.
B)Employment and unemployment are both procyclical.
C)Employment is procyclical and unemployment is coincident with the business cycle.
D)Employment is procyclical and unemployment is countercyclical.

Question

Quizplus · Accepted Answer

Employment is typically procyclical, meaning it tends to rise and fall with the business cycle. Unemployment, on the other hand, is generally countercyclical, meaning it tends to be high during recessions and low during expansions. When the economy is doing well and businesses are hiring, employment rises and unemployment falls. Conversely, during a recession, companies may lay off workers or stop hiring, leading to a decrease in employment and an increase in unemployment.

Which of the Following Is True