What term is given to unemployment caused by a downturn in the business cycle ?
Correct answer: D. Cyclical unemployment
- A. Underemployment
- B. Disguised unemployment
- C. Temporary unemployment
- D. Cyclical unemployment
Explanation
A downturn in the business cycle reduces production and the demand for labour, creating cyclical unemployment. Underemployment and disguised unemployment describe other forms of inadequate employment, not the business-cycle cause.
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