QUESTION IMAGE
Question
which is most directly related to cyclical unemployment?
the age distribution of the country
an increased use of the internet for job searches
an increase in the number of new college graduates looking for work
recessions
Cyclical unemployment is related to the business cycle. Recessions are part of the business cycle. When there is a recession (a downturn in the business cycle), demand for goods and services decreases. Firms produce less, so they lay off workers, leading to cyclical unemployment. The age distribution of a country is related to demographic factors (not the business cycle). Increased use of the Internet for job - searches affects frictional unemployment (as it may change the time people spend unemployed while searching). An increase in new college graduates looking for work is related to seasonal or frictional unemployment (as new graduates enter the labor market at a certain time, not due to the business cycle).
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recessions