Cyclical Unemployment Is

question 30

Multiple Choice

Cyclical unemployment is

• A)the total of structural and frictional unemployment.
• B)always greater than the total of structural and frictional unemployment.
• C)created by a recession.
• D)higher when the economy is expanding.
• E)part of frictional unemployment.

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Definitions:

Supply Increase

A situation where the quantity of a good or service that is available to consumers rises.

Increasing-Cost Industry

An increasing-cost industry is one in which costs of production increase as the industry expands, often due to factors like limited resources or higher input prices.

Long-Run Supply Curve

A graphical representation showing quantities of goods a firm is willing and able to supply at different prices over a long period, assuming all inputs are variable.

Decreasing-Cost Industry

Industry whose long-run supply curve is downward sloping.