Cyclical unemployment is the result of
A)a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
B)the search process of matching workers with jobs.
C)the ups and downs in inflation.
D)a slowdown in the economy.
E)regional differences in the economy.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a slowdown in the economy, which leads to a decrease in demand for labor as businesses reduce production or close down completely. This type of unemployment is directly related to fluctuations in the business cycle, which is why it is also known as "business cycle unemployment." The other choices are not directly tied to cyclical unemployment. A is structural unemployment, B is frictional unemployment, C is related to inflation, and E is geographic unemployment.

Cyclical Unemployment Is the Result of