Cyclical unemployment
A) occurs when technology improvements change job requirements.
B) fluctuates over the business cycle.
C) is due mainly to job leavers.
D) may increase or decrease during an expansion.

Question

Quizplus · Accepted Answer

Cyclical unemployment is closely tied to the business cycle and tends to increase during economic downturns and decrease during expansions. It is caused by fluctuations in aggregate demand for goods and services, which in turn impacts demand for labor. Therefore, choice B - fluctuates over the business cycle - is the correct answer.

Cyclical Unemployment