How is 'cyclical unemployment' defined?
A)Unemployment due to an economic contraction or recession.
B)Unemployment due to changes in the structure of the economy.
C)Unemployment that occurs when people are searching for their first job.
D)Unemployment that occurs when people become discouraged and stop looking for work.

Question

Quizplus · Accepted Answer

Cyclical unemployment is unemployment caused by fluctuations in the business cycle or economic downturns, leading to a decrease in the demand for labor. This type of unemployment is closely linked to the overall health of the economy and occurs during periods of recession or contraction.

How Is 'Cyclical Unemployment' Defined