Cyclical Unemployment Is

question 40

Multiple Choice

Cyclical unemployment is:

• A)the additional unemployment not captured in official statistics resulting from discouraged workers and involuntary part-time workers.
• B)the extra unemployment that occurs during periods of recession.
• C)short-term unemployment that is associated with the process of matching workers with jobs.
• D)long-term and chronic unemployment that exists even when the economy is producing at a normal rate.Cyclical unemployment is the extra unemployment that occurs during periods of recession.

---

Definitions:

Loan Period

is the duration over which a borrower is obligated to repay a loan, from the initiation of the loan to the final payment.

Interest Rate

The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal, usually on an annual basis.

Rationing Function

The process through which prices distribute scarce goods and services among individuals who demand them, effectively limiting the quantity that consumers can purchase.

Incentive Function

The aspect of economic policy or mechanism designed to motivate individuals or entities to act in a certain way by offering rewards.