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Chapter 21: Q 19. (page 524)

When would you expect cyclical unemployment to

be rising? Falling?

Short Answer

Expert verified

There are situations when cyclical unemployment will fall and rise. As cyclical unemployment relates to the business cycle of an economy.

Step by step solution

01

Step 1. Definition

Cyclical unemployment is a type of the various types of unemployment. It is defined as unemployment in which the main causes are the cyclical trends in the economy like economic upturn and economic downturn.

02

Step 2. Explanation

Cyclical unemployment will fall when an economy is doing goods and is in the phase of expansion. Because in the time of expansion the firms will hire a greater number of people.

Cyclical unemployment will rise when the economy is not doing good and is in a state of recession. Because at the time of recession the firms will hesitate from hiring people.

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Most popular questions from this chapter

What is the difference between being unemployed

and being out of the labor force?

Over the long term, has the U.S. unemployment rate generally trended up, trended down, or remained at basically the same level?

Assess whether the following would be counted as “unemployed” in the Current Employment Statistics survey.

a. A husband willingly stays home with children while his wife works.

b. A manufacturing worker whose factory just closed down.

c. A college student doing an unpaid summer internship.

d. A retiree.

e. Someone who has been out of work for two years but keeps looking for a job.

f. Someone who has been out of work for two months but isn’t looking for a job.

g. Someone who hates her present job and is

actively looking for another one.

h. Someone who decides to take a part-time job because she could not find a full-time position.

Is the increase in labor force participation rates among women better thought of as causing an increase in cyclical unemployment or an increase in the natural rate of unemployment? Why?

What type of unemployment (cyclical, frictional, or structural) applies to each of the following:

(a) landscapers laid off in response to a drop in new housing construction during a recession.

(b) coal miners laid off due to EPA regulations that shut down coal-fired power

(c) a financial analyst who quits his/her job in Chicago and is pursuing similar work in Arizona

(d) printers were laid off due to a drop in demand for printed catalogs and flyers as firms go the internet to promote and advertise their products.

(e) factory workers in the U.S. were laid off as the plants shut down and move to Mexico and Ireland.
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