When does cyclical unemployment arise?
A)when the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply
B)when business activity in the macroeconomy declines
C)when the business cycle enters an expansionary phase
D)when labour unions strike for higher wages

Question

Quizplus · Accepted Answer

Cyclical unemployment arises when there is a decline in business activity in the macroeconomy. It is a result of the business cycle entering a recessionary phase where output, employment, and income levels decrease due to a fall in aggregate demand.

When Does Cyclical Unemployment Arise