Cyclical unemployment is the result of
A)a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
B)the search process of matching workers with jobs.
C)the ups and downs in inflation.
D)a slowdown in the economy.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a slowdown in the economy. When the economy is in a downturn, businesses reduce their production, which leads to laying off workers. As a result, workers are out of work due to a lack of demand for their skills or services. This type of unemployment is known as cyclical unemployment.

Cyclical Unemployment Is the Result of