Question

The rise in unemployment that occurs because of a recession is known as cyclical unemployment, because it is closely tied to the ______________.

Answer 1

Answer:

Business cycle

Explanation:

Cyclical unemployment is when employment level changes with the business cycles. Unemployment increases when there's a downturn in the economy and reduces when there's an upturn in the economy.

During downturns, firms demand for labour falls and unemployment increases.

During a boom, firms demand for labour increases and unemployment falls.

I hope my answer helps you