Asked by Chris Turner on Jun 30, 2024
Verified
If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry,then the increase can be blamed on:
A) seasonal unemployment.
B) cyclical unemployment.
C) structural unemployment.
D) frictional unemployment.
E) underemployment.
Cyclical Unemployment
A type of unemployment that relates to the cyclical trends in the economy, fluctuating with the business cycle's contraction and expansion phases.
Automobile Industry
A sector of the economy focused on the manufacturing, design, marketing, and selling of motor vehicles.
Unemployment Rate
The share of the labor market that is unemployed and searching for a job actively.
- Understand the linkage between economic phases and the different types of unemployment.
Verified Answer
ZK
Zybrea KnightJul 03, 2024
Final Answer :
B
Explanation :
Cyclical unemployment is caused by fluctuations in the business cycle, such as a decrease in demand for goods or services leading to a decrease in employment. The slowdown in the automobile industry suggests a decrease in demand, leading to a rise in unemployment, which is cyclical in nature.
Learning Objectives
- Understand the linkage between economic phases and the different types of unemployment.