Cyclical unemployment arises when:
A)business activities in an economy decline.
B)a worker leaves a job to seek a better position.
C)labor unions in an industry strike for higher wages.
D)the agriculture sector completes a cycle of planting, cultivating, and harvesting a nation's food supply.
E)new inventions in technology increase automation in an industry resulting in existing workers being replaced.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by fluctuations in the economy's business cycle. When an economy is in a downturn, businesses reduce their production and lay off workers, leading to increased unemployment. This type of unemployment is cyclic in nature as it corresponds to the business cycle of an economy.

Cyclical Unemployment Arises When