Cyclical unemployment arises when:
A)business activity in the macroeconomy declines.
B)the business cycle enters an expansionary phase.
C)labor unions strike for higher wages.
D)the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.

Question

Cyclical unemployment arises when:
A)​business activity in the macroeconomy declines.
B)​the business cycle enters an expansionary phase.
C)​labor unions strike for higher wages.
D)​the agriculture sector completes the cycle of planting, cultivating, and harvesting the nation's food supply.

Quizplus · Accepted Answer

Cyclical unemployment occurs during a downturn in the business cycle when the overall demand for goods and services decreases, causing companies to reduce their workforce to cut costs. This type of unemployment is directly related to the state of the macroeconomy, and not influenced by factors such as labor unions or seasonal agricultural activity.

Cyclical Unemployment Arises When