Final answer:
If seasonal unemployment increases, the seasonally adjusted economy is contracting.
Step-by-step explanation:
When seasonal unemployment increases, the seasonally adjusted economy is contracting. Ceteris paribus means that all other variables are held constant.
In this case, we assume that all other factors influencing the economy remain the same, except for the increase in seasonal unemployment. Seasonal unemployment refers to the unemployment that occurs during specific seasons or times of the year when certain industries or occupations experience a decrease in demand for labor.
Therefore, if seasonal unemployment increases, it indicates a decline in employment opportunities during that particular season, and as a result, the seasonally adjusted economy will be contracting.