The portion of unemployment that is attributable to an overall decline in the economy's business activity is called:
A)frictional unemployment.
B)underemployment.
C)cyclical unemployment.
D)structural unemployment.

Question

The portion of unemployment that is attributable to an overall decline in the economy's business activity is called:
A)​frictional unemployment.
B)​underemployment.
C)​cyclical unemployment.
D)​structural unemployment.

Quizplus · Accepted Answer

Cyclical unemployment is the portion of unemployment that is caused by a downturn in the business cycle or overall decline in economic activity. It is also sometimes referred to as demand-deficient unemployment as it occurs due to a lack of demand for goods and services in the economy.

The Portion of Unemployment That Is Attributable to an Overall