Close Menu
Login
(Sponsored by Sir Tauqeer)
Join Sir Tauqeer Whatsaap group
(Sponsored by Sir Tauqeer)
Join Sir Tauqeer Whatsaap group
(Sponsored by Sir Tauqeer)
Join Sir Tauqeer Whatsaap group
By CSS 2025 Economics Past Paper Mcqs CSS 2025 Past Papers Mcqs CSS Economics Past Paper Mcqs CSS Past Papers Mcqs Economics Mcqs No Comments

What type of unemployment is directly related to swings in the business cycle?

A. Seasonal
B. Frictional
C. Cyclical
D. Structural

Submitted by: Areesha Khan

Advertisement

Cyclical unemployment occurs due to economic fluctuations (recession or boom). During downturns, businesses reduce production and lay off workers, increasing unemployment.

The type of unemployment directly related to swings in the business cycle is called cyclical unemployment.
Explanation: Cyclical unemployment rises during economic downturns (recessions) when demand decreases, and falls during economic expansions when demand increases, essentially mirroring the fluctuations of the business cycle.
Key points about cyclical unemployment:
Cause: Changes in aggregate demand due to business cycle fluctuations.
Behavior: Increases during recessions, decreases during economic growth.
Example: A factory worker laid off during a recession due to reduced production needs.

Related Mcqs:

  1. Unemployment benefits may increase the unemployment rate because unemployment benefits ?
    A. encourage people to quit their jobs B. reduce the cost of job search C. enable people to quit searching for work D. reduce the benefits of additional job searching...
  2. Suppose two economists are arguing about policies that deal with unemployment. One economist says. The government could lower unemployment by one percentage point if it would just increase government spending by 50 billion dollars the other economist responds Nonsense and poppycock! If the government spent an additional 50 billion dollars it would reduce unemployment by only one tenth of one percent. and that effect would only be temporary! These economists ?
    A. None of these answers B. Disagree because they have different scientific judgments C. really don’t disagree at all. It just appears that they disagree D. disagree because they have different values...
  3. What term is given to unemployment caused by a downturn in the business cycle ?
    A. Underemployment B. Disguised unemployment C. Temporary unemployment D. Cyclical unemployment...
  4. If the economy is at the peak of the business cycle, aggregate demand ____ unemployment _______ inflation _______ and the current account of the balance of payments is likely to move towards _______?
    A. rise; falls; rise; deficit B. falls; rises; falls; surplus C. falls; falls; falls; surplus D. is static; low; rises; deficit...
  5. If the economy is in the though phase of the business cycle, aggregate demand ____ unemployment ______ inflation ______ and the current account of the balance of payments is likely to move towards ________?
    A. falls; falls; falls; surplus B. falls; rises; falls; surplus C. is static; low; rises; deficit D. rises; falls; rises; deficit...
  6. If the economy is in the expansionary phase of the business cycle, aggregate demand ____ unemployment ____ inflation ____ payments is likely to move towards ____?
    A. falls; rise; falls; surplus B. is static; low; rise; deficit; C. falls; falls; falls; surplus D. rise; falls; rises; deficit...
  7. If the economy is in the recessionary phase of the business cycle, aggregate demand ___ unemployment ____ inflation ___ and the current account of the balance of payments is likely to move towards ____?
    A. falls; falls; falls; surplus B. is static; low; rises; deficit C. falls; rises; falls; surplus D. rises; falls; rises; deficit...
  8. Unemployment resulting from real wages being above their equilibrium level is called _________ unemployment?
    A. natural B. frictional C. disequilibrium D. structural...
  9. Unemployment resulting from changes in the pattern of demand or supply in the economy is called _______ unemployment?
    A. regional B. technological C. structural D. demand-deficient...
  10. In the short run unemployment may fall below the natural rate of unemployment if ?
    A. Nominal wages have risen less than inflation B. Nominal wages have risen at the same rate as inflation C. Nominal wages have risen more than inflation D. Nominal wages have risen less than unemployment...
Advertisement

The correct answer to the question: "What type of unemployment is directly related to swings in the business cycle?" is "Cyclical".

Share.
Leave A Reply

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

The reCAPTCHA verification period has expired. Please reload the page.