Cyclical Unemployment

question 12

Multiple Choice

Cyclical unemployment

• A)has a different explanation than does the natural rate of unemployment.
• B)refers to the year-to-year fluctuation in unemployment around an economy's natural rate of unemployment.
• C)is closely associated with short-run ups and downs of economic activity.
• D)All of the above are correct.

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Definitions:

Rental Housing

Properties available for rent to provide accommodation, usually on a monthly or yearly lease agreement.

Price-Consumption Curve

A curve in economics that shows the changes in an individual's consumption of two goods as the price of one good changes, holding the individual's utility level constant.

Engel Curve

A graphical representation showing how household spending on a particular good or service changes with income.

Upward-Sloping

A description of a line or curve on a graph that indicates an increase in a variable as another variable increases.