In the short-run macro model,what type of unemployment is caused by insufficient spending?
A) Cyclical
B) Structural
C) Frictional
D) Seasonal
E) All types of unemployment are caused by insufficient spending

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by insufficient spending, also known as a lack of demand for goods and services. This results in businesses reducing production and laying off workers, increasing the unemployment rate. Structural, frictional, and seasonal unemployment are caused by other factors such as changes in technology, job mismatches, and seasonal fluctuations in demand, respectively.

In the Short-Run Macro Model,what Type of Unemployment Is Caused