Question

The primary factor leading to cyclical unemployment is when

A) businesses often discriminate in their hiring practices on the basis of age, sex, and race.
B) some workers do not have marketable job skills.
C) workers quit their jobs in order to look for higher paying employment.
D) the level of overall economic activity fluctuates.

Answer 1

Cyclical unemployment is primarily caused by fluctuations in the overall economic activity, particularly during recessions, and can be addressed by stimulating the economy to increase buying power.

Step-by-step explanation:

The primary factor leading to cyclical unemployment is when the level of overall economic activity fluctuates. This type of unemployment occurs during periods when the economy enters a recession, and the demand for labor decreases as businesses scale back production in response to reduced consumer spending.

Governments can address cyclical unemployment by stimulating the overall buying power in the economy, thereby encouraging firms to hire more workers as they see the potential for increased sales and profits.