Question

unemployment created due to cylical functationa give economic term​

Answer 1

Answer:

Cyclical unemployment is a type of unemployment where labor forces are reduced as a result of business cycles or fluctuations in the economy, such as recessions (periods of economic decline). When the economy is at its peak or has continuous growth, the rate of cyclical unemployment is low, because during this period of production, sales and income increase, therefore, more people are needed to meet the demand. On the other hand, during a recession, the rate of cyclical or involuntary unemployment is high, due to the decline in consumer demand for goods and services. In other words, there is a decrease in production – therefore, fewer workers are needed, resulting in job layoffs. The number of unemployed workers exceeds the number of job vacancies in the labor market.