Unemployment correlated with the ups and downs of the business cycle is called:

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the fluctuations in the business cycle. When the economy is in a recession or downturn, businesses may lay off workers or slow down hiring, leading to an increase in cyclical unemployment. Conversely, when the economy is booming, businesses may expand and hire more workers, leading to a decrease in cyclical unemployment. Frictional unemployment refers to the short-term unemployment that occurs when workers are between jobs, while structural unemployment is caused by a mismatch between the skills of workers and the needs of employers. Temporary unemployment is a vague term and could refer to any type of unemployment that is short-lived or temporary, including frictional and cyclical unemployment.

Unemployment Correlated with the Ups and Downs of the Business