Cyclical unemployment is the ?
Correct answer: D. Unemployment that occurs during recessions and depressions.
- A. Portion of unemployment that is due to the normal working of the labour market
- B. Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.
- C. Unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.
- D. Unemployment that occurs during recessions and depressions.
Explanation
Cyclical unemployment is linked to the business cycle and rises when recessions or depressions reduce aggregate demand and production. The other descriptions refer to natural, structural, or discouraged-worker unemployment.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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