Which of the following statements is false?
A) Cyclical unemployment would increase with diminished economic activity.
B) Cyclical unemployment would be eliminated by higher levels of economic activity.
C) Structural unemployment is one of the components of cyclical unemployment.
D) Higher the structural unemployment rate, higher is the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is related to the business cycle, with higher unemployment during economic downturns and lower unemployment during economic upturns. Structural unemployment, on the other hand, is caused by mismatches between workers' skills and the demands of the job market, changes in technology, or other long-term changes in the economy. It is not a component of cyclical unemployment but rather a separate type of unemployment.

Which of the Following Statements Is False