Question

Cyclical unemployment is caused by A. frictional and structural unemployment B. frictional but not structural unemployment C. neither frictional nor structural unemployment D. structural but not frictional unemployment

Answer 1

Answer:

The correct answer is option C.

Explanation:

Cyclical unemployment can be defined as the unemployment caused by business cycles mainly because of recession in the economy.

Structural unemployment can be defined as the unemployment caused by the mismatch in the skills of the workers and the skills required for the jobs available.

Frictional unemployment is the temporary unemployment cause because of shifts in the job. When people move from one job to another it causes frictional unemployment. But it exists only for a short period.

The cyclical unemployment is caused by downturns in the business cycle, neither frictional nor structural unemployment causes cyclical unemployment.