Cyclical unemployment is a consequence of:
A)downturns in the economy
B)the decreasing relative importance of goods and the increasing relative importance of services in our economy
C)the everyday dynamics of a free labour market
D)technological change
E)seasonal changes in the labour market

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by downturns in the economy, which lead to a decrease in demand for goods and services, resulting in a decrease in demand for labour. This leads to an increase in unemployment as businesses lay off workers or stop hiring.

Cyclical Unemployment Is a Consequence Of