Cyclical Unemployment Occurs When

question 370

Multiple Choice

Cyclical unemployment occurs when

• A) individuals enter into the labor market making the rounds of potential employers.
• B) individuals give up the search for employment.
• C) a business cycle recession decreases employment.
• D) individuals with skills no longer valued in the labor market cannot find employment.

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Definitions:

Normative Statement

An opinion-based statement that reflects values or judgments and cannot be tested or disproven by observation.

Positive

In the context of economic analysis, it often refers to a fact-based approach that attempts to describe how economic systems actually work without making judgments about their desirability.

Circular-Flow Diagram

A model that illustrates the movement of goods, services, and money between households and businesses in an economy.

Factor Market

A marketplace where services of the factors of production (labor, land, capital) are bought and sold.