Which of the following statements is the most accurate concerning the behaviour of the unemployment rate in Canada?
A)Both the cyclical behaviour of the unemployment rate and the trend behaviour of the unemployment rate are well explained by demographic factors.
B)Both the cyclical behaviour of the unemployment rate and the trend behaviour of the unemployment rate are well explained by changes in the level of aggregate economic
Activity.
C)The cyclical behaviour of the unemployment rate is well explained by changes in the level of aggregate economic activity, and the trend behaviour of the unemployment rate is well
Explained by demographic factors.
D)The cyclical behaviour of the unemployment rate is well explained by demographic factors, and the trend behaviour of the unemployment rate is well explained by changes in the level
Of aggregate economic activity.
E)Both the cyclical behaviour of the unemployment rate and the trend behaviour of the unemployment rate are not well explained by demographic factors.

Question

Quizplus · Accepted Answer

The cyclical behaviour of the unemployment rate is affected by changes in the level of aggregate economic activity, as fluctuations in business cycles can lead to increases or decreases in the number of jobs available. However, the trend behaviour of the unemployment rate is affected by demographic factors such as changes in the age structure of the population, which can impact the size of the labour force and the demand for workers. Therefore, both factors contribute to the behaviour of the unemployment rate in Canada.

Which of the Following Statements Is the Most Accurate Concerning