An increase in cyclical unemployment will result in
A)an increase in the natural rate of unemployment.
B)an increase in the unemployment rate.
C)an increase in structural unemployment.
D)a decrease in frictional unemployment.
E)an increase in the employment population ratio.

Question

Quizplus · Accepted Answer

Cyclical unemployment refers to unemployment that results from downturns in the business cycle. During a recession, many businesses may be forced to lay off workers, resulting in an increase in the unemployment rate. Therefore, an increase in cyclical unemployment will result in an increase in the unemployment rate.

An Increase in Cyclical Unemployment Will Result in