Cyclical unemployment is caused by:Group of answer choicescyclical changes in the job skills among workers.seasonal layoffs.declines in real GDP.shifts in the job skills required in the economy.
Question
Cyclical unemployment is caused by:Group of answer choicescyclical changes in the job skills among workers.seasonal layoffs.declines in real GDP.shifts in the job skills required in the economy.
Solution
Cyclical unemployment is caused by declines in real GDP.
Here's a step-by-step explanation:
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Cyclical unemployment refers to the unemployment that results from the up and down cycles in an economy. It is the result of businesses not having enough demand for labor to employ all those who are looking for work.
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The demand for labor is dependent on the demand for goods and services that these workers produce. When demand for these goods and services falls (during a recession, for example), real GDP declines.
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As real GDP declines, businesses cut back on their workforce to reduce costs, leading to unemployment.
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Therefore, cyclical unemployment is caused by declines in real GDP.
The other options mentioned like cyclical changes in job skills among workers, seasonal layoffs, and shifts in job skills required in the economy are not causes of cyclical unemployment. They are related to other types of unemployment such as structural and seasonal unemployment.
Similar Questions
Which of the following is an example of cyclical unemployment?Group of answer choicesA worker is unemployed because the cost of finding a job in another city is too high.A worker quits her job to find a better job.A worker loses her job because the minimum wage increases substantially.A worker loses her job because the economy begins to enter a recession.
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called: a. cyclical unemployment. b. structural unemployment. c. full unemployment. d. frictional unemployment.
Re explain it again by time include Involuntary Unemployment to Cyclical unemployment and Structural unemployment
Explain why both cyclical and structural unemployment occur during a recession
Cyclical unemployment refers toGroup of answer choicesthe relationship between the probability of unemployment and a worker's experience level.short-run fluctuations around the natural rate of unemployment.the portion of unemployment created by wages set above the equilibrium level.the difference between the structural and fricti
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