Cyclical Unemployment: Definition & Examples


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Which one of the following is the best explanation of cyclical unemployment?

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1. Which is the best explanation of the business cycle?

2. If an economy is experiencing expansion, what will generally happen to the employment rate?

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About This Quiz & Worksheet

Become knowledgeable about the connections between demand, employment, and the economy with these materials. Get to know the lesson well and then see what you've learned about the nature of employment with our five-question quiz.

Quiz & Worksheet Goals

See what you have learned about the employment rate in connection with the following topics:

  • Cyclical unemployment
  • The business cycle
  • Economic expansion
  • Economic contraction

Skills Practiced

Practice these skills using this quiz and worksheet:

  • Interpreting information - verify that you can read information regarding the business cycle and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about the nature of cyclical unemployment
  • Making connections - use your understanding of the concept of cyclical unemployment to answer questions about what happens to the unemployment rate during economic expansion and contraction.

Additional Learning

The attached lesson, called Cyclical Unemployment: Definition & Examples, will prepare you to:

  • Elaborate on the relationship between unemployment and aggregate demand
  • Describe the factors involved in the events of the Great Depression
  • Explain how a rise in interest rates leads to an increase in unemployment