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.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle, resulting in a decrease in the aggregate demand for goods and services, leading to layoffs and job losses. Therefore, an increase in cyclical unemployment will result in an increase in the unemployment rate.

An Increase in Cyclical Unemployment Will Result in