Question

Cyclical unemployment is Question 47 options:

1. related to job search difficulties for potential workers.
2. a result of business recessions that occur when aggregate demand is insufficient to create full employment.
3. a result of a poor match of worker's abilities and skills with current requirements of employers.
4. a result of the seasonal pattern of work in specific industries.

Answer 1

2) a result of business recessions that occur when aggregate demand is insufficient to create full employment.

Step-by-step explanation:

There are 3 basic types of unemployment:

1. frictional unemployment or voluntary unemployment that takes place when a worker quits his current job and starts to search for a better one.
2. Structural unemployment is not voluntary and results from a mismatch in the workers' skills and abilities, and the skills and abilities required to perform certain jobs that are available.
3. Cyclical unemployment is also not voluntary and is the result of economic recessions that lower the general employment level.