(A) TRUE
Cyclical unemployment is unemployment resulting from fluctuations in economic activity.
This type of unemployment can be defined as the cyclical trends in the industry or the business cycle. The lower amount of cyclical unemployment is at its lowest when the economy is operating in its good way and is at its highest.
Fluctuations occur when an economic activity cannot take place due to the fall in the economy condition that is the bear phase which in turn lead loss to the producers and they cut down the labour which generates unemployment.
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