Cyclical unemployment is that which rises in recessions and shrinks during expansions.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly tied to economic conditions and fluctuates with business cycles. When the economy is in a downturn, companies may lay off employees or reduce hiring, increasing the level of cyclical unemployment. Conversely, when the economy is expanding, companies are more likely to hire, leading to a decrease in cyclical unemployment.

Cyclical Unemployment Is That Which Rises in Recessions and Shrinks