Cyclical Unemployment

Question 1

Cyclical Unemployment Definition

Answer 1

Cyclical unemployment is correlated with the ups and downs of the buisness cycle. The demand for labour is derived form the demand for final goods and services. Therefore, cyclical unemployment can be exepected to follow the ups and downs of the buisness cycel.

Question 2

What does it mean to be demand-deficient?

Answer 2

less consumer spending & less business investment, causes lower business profitability & so firms may need to get rid of some workers to reduce costs!

Question 3

When the economy is doing poorly, there will be a low demand for workers

Answer 3

unemployment rate will rise.

Question 4

When the economy is doing good, there will be a strong demand for workers

Answer 4

unemployment rate will fall.

Question 5

Seasonal Unemployment

Answer 5

Seasonal unemployment occurs during particular times of the year because of
seasonal patterns that affect jobs. Many of these workers come from the tourism and agriculture industries (e.g. ski instructors, fruit pickers)