Asked by kevin britton on Jun 29, 2024
Verified
Which of the following statements is true of unemployment?
A) Cyclical unemployment decreases during recessions and increases during expansions.
B) Some unemployment exists even when the economy is healthy and growing.
C) Unemployment and inflation are not related.
D) People who are willing and able to work but have given up the search for a job are considered unemployed.
E) Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.
Cyclical Unemployment
Unemployment that is linked to the cyclical trends in the economy, typically increasing during recessions and decreasing during expansions.
Economy
The system by which goods and services are produced, distributed, and consumed within a particular country or area.
Inflation
Inflation is the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.
- Recognize the relationship between economic cycles and unemployment types.
Verified Answer
ZR
Zulema ReynosoJul 01, 2024
Final Answer :
B
Explanation :
Some level of unemployment, called natural or frictional unemployment, exists even when the economy is healthy and growing due to factors such as skill mismatches and people voluntarily leaving their jobs to search for better opportunities.
Learning Objectives
- Recognize the relationship between economic cycles and unemployment types.