Asked by kevin britton on Jul 08, 2024
Verified
The normal rate of unemployment around which the unemployment rate fluctuates is called cyclical unemployment.
Cyclical Unemployment
Unemployment caused by a downturn in economic activity or recession, affecting the overall demand for labor.
Unemployment Rate
The segment of the labor force that is currently without work yet actively seeking employment opportunities.
- Understand the principles of natural and cyclical unemployment.
Verified Answer
IV
Isabelle VincentJul 14, 2024
Final Answer :
False
Explanation :
The normal rate of unemployment around which the unemployment rate fluctuates is called the natural rate of unemployment, not cyclical unemployment. Cyclical unemployment is the deviation from the natural rate due to economic downturns.
Learning Objectives
- Understand the principles of natural and cyclical unemployment.
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