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19 February, 09:29

Cyclical unemployment a. is caused by changes in the business cycle. b. results from imperfect search activities in matching qualified employees with employers. c. results from institutional factors that make it difficult for some workers to find jobs. d. will probably go up as a result of improvements in online job searching.

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  1. 19 February, 09:55
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    a. Is caused by changes in the business cycle.

    Explanation:

    Cyclical unemployment depends on the economic cycle that a country's economy is going through at a given time. In stages of recession or crisis, cyclical unemployment increases while in phases of expansion they decrease.

    In economic terms, cyclical unemployment is said to be a fluctuation in the unemployment rate with respect to its natural rate, that is, the unemployment rate that cannot be reduced and is considered normal in an economy.

    Cyclical unemployment increases when there is a fall in the economic activity of a country. In times when companies reduce their sales and investments, the demand for work is also reduced, so some people are laid off from their jobs while others cannot find a new job.

    This type of unemployment is expected to reduce as economic activity begins to reactivate.
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