The primary factor leading to cyclical unemployment is when
A) businesses often discriminate in their hiring practices on the basis of age, sex, and race.
B) the level of overall economic activity fluctuates.
C) workers quit their jobs in order to look for higher paying employment.
D) some workers do not have marketable job skills.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the level of overall economic activity in the economy. When the economy enters a recession, demand for goods and services decreases, leading to reduced production and consequently, layoffs. Conversely, in a booming economy, demand increases, leading to more jobs.

The Primary Factor Leading to Cyclical Unemployment Is When