Which type of unemployment do economists attempt to resolve using economic policy?

a)

cyclical unemployment

b)

frictional unemployment

c)

frictional and cyclical unemployment

d)

structural unemployment

Hi!

Economists attempt to resolve A) Cyclical Unemployment using economic policy.

This is the worst kind of unemployment because it is caused by contraction of the economy. It happens when goods and services demand falls, and there are fewer job openings, causing unemployment. Often, economic policies from the government are required to stop this kind of unemployment, by incentivizing the economy.