Question

Why cyclical unemployment is created in the phase of depression?

Answer 1

Cyclical unemployment is at the lowest point when business ... by business cycles returns to the expansion phase. ... Thus , two extra methods have been created by ...

Answer 2

Answer:

Due to poor economic growth

Explanation:

Cyclical unemployment is unemployment that comes when the overall demand for goods and services is very low. It cannot support full employment. It occurs during periods of poor economic growth, during periods of economic contraction, recession(phase of depression) etc. During slow economic growth, demand of product reduces. Due to the production of the product in market reduces and thus manpower requirement decreases. Cyclic unemployment maybe for a short period of time and when demand in the market increases, It automatically recovers.