What is cyclical unemployment closely associated with?
A) long-term economic growth
B) short-run ups and downs of the economy
C) fluctuations in the natural rate of unemployment
D) seasonal fluctuations in spending

Question

Quizplus · Accepted Answer

Cyclical unemployment is closely associated with short-run ups and downs of the economy, meaning that it is caused by fluctuations in business cycles. When the economy is in a recession or contraction, businesses may need to lay off workers or reduce their working hours, leading to higher levels of cyclical unemployment. Conversely, when the economy is in a period of expansion, businesses may need to hire more workers, reducing cyclical unemployment.

What Is Cyclical Unemployment Closely Associated With