Cyclical unemployment is associated with
A)people quitting their present jobs to look for other jobs.
B)people entering the labour force typically take some time to find a job.
C)changes to the economy's industrial structure resulting from growth in some industries and decline in others.
D)an output level different from the economy's potential output.
E)differences between the characteristics of the supply of labour and the demand for labour.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is not enough demand for goods and services in the economy, leading to a decrease in production and, consequently, a decrease in the demand for labor. This results in an output level that is different from the economy's potential output.

Cyclical Unemployment Is Associated with