Cyclical unemployment arises when
A)unskilled or low-skilled workers find it difficult to obtain desirable,long-term jobs.
B)labour must be reallocated from industries that are shrinking to areas that are growing.
C)workers must search for suitable jobs and firms must search for suitable workers.
D)output and employment are below full-employment levels.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is insufficient demand for goods and services in the economy, leading to a decrease in production and employment below full-employment levels.

Cyclical Unemployment Arises When