Fluctuations occur in the economy due to phases of boom, recession, depression, and recovery in the…
Cyclical unemployment arises from macroeconomic fluctuations in aggregate demand across the phases of the business or trade cycle—namely boom, recession, depression, and…
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Fluctuations occur in the economy due to phases of boom, recession, depression, and recovery in the trade cycle. The Unemployment caused due to these phenomena is called:
Answer and explanation
Correct answer D
Cyclical unemployment arises from macroeconomic fluctuations in aggregate demand across the phases of the business or trade cycle—namely boom, recession, depression, and recovery. During recessions and depressions, reduced spending on goods and services leads firms to cut production and lay off workers until economic recovery restores aggregate demand.
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UGC NET HRM / Labour Welfare and Industrial Relations