Question

What is the characteristic of cyclical unemployment?

a. It is always the lowest unemployment rate.
b. It is unrelated to the overall unemployment rate.
c. It varies with the economic cycle and tends to be the worst kind of unemployment rate.
d. It is always zero.

Answer 1

Cyclical unemployment varies with the economic cycle and tends to be the worst kind of unemployment rate.

Step-by-step explanation:

The characteristic of cyclical unemployment is that it varies with the economic cycle and tends to be the worst kind of unemployment rate. It explains why unemployment rises during a recession and falls during an economic expansion. Cyclical unemployment is caused by fluctuations in the business cycle, as the economy produces below potential GDP, which gives potential employers less incentive to hire.