The Best Description of the Cause of "Cyclical" Unemployment Is

question 40

Multiple Choice

The best description of the cause of "cyclical" unemployment is that

• A)workers often voluntarily quit a job to look for a better job.
• B)some individuals do not have marketable skills for the jobs that do exist.
• C)firms engage in race, gender and sex discrimination in their hiring practices.
• D)the AD curve shifts to the left.
• E)the level of overall economic activity falls below its potential level.

---

Definitions:

Indirect Materials

Materials used in the production process but not directly traceable to a finished product, such as lubricants for machinery.

Spending Variance

The difference between the budgeted or planned amount of expense and the actual amount spent.

Standard Costing System

A cost accounting system that assigns expected costs to products to help managers monitor and control actual costs.

Direct Materials

Raw materials that can be directly traced to the production of a specific product.