Which Event(s) Increase Cyclical Unemployment

question 1

Multiple Choice

Which event(s) increase cyclical unemployment?

• A) Real GDP growth turns negative.
• B) Unemployment benefits increase.
• C) The pace of technological changes increases.
• D) Both job destruction and job creation increase.
• E) All of the above increase cyclical unemployment.

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Definitions:

Demographic Transition

A theory describing the transition from high birth and death rates to lower birth and death rates as a country or region develops from a pre-industrial to an industrialized economic system.

Death Rates

The amount of mortalities within a specific group of people, adjusted for its size, over a given time period.

Population Explosion

This refers to a rapid increase in the population size over a short period, often leading to overpopulation concerns.