Which of the Following Is True of Cyclical Unemployment

question 51

Multiple Choice

Which of the following is true of cyclical unemployment?

• A) It occurs even when an economy is producing at a point on its production possibilities frontier.
• B) It occurs only during a recession.
• C) It tends to occur when an economy experiences inflation.
• D) It is a part of the natural rate of unemployment in an economy.

---

Definitions:

Binding Legal Contracts

Agreements that are enforceable by law, typically requiring offer, acceptance, and consideration.

Legal Contracts

Agreements between two or more parties that create mutual legal obligations and are enforceable by law.

Legal Suits

Formal legal actions taken by one party against another in court, often involving disputes or claims requiring resolution.

Acts Of Owners

Decisions or actions taken by the owners of a company that affect the ownership structure or financial strategy.