Th2.1: Cyclical Unemployment Flashcards
1
Q
What is cyclical unemployment due to?
A
a general lack of demand of goods and services within the country
2
Q
What is cyclical unemployment also known as?
A
Keynesian ‘demand deficient’ unemployment
3
Q
What do we see when there is a recession or severe slowdown in economic growth?
A
a rising in unemployment because of plant closures, business failures and an increase in worker layoffs and redundancies
4
Q
What is a rising in unemployment due to in this case?
A
a decrease in demand causing businesses to cut employment in order to control costs and restore some of their profitability
