Question

Cyclical unemployment occurs when ___________.

Select the correct answer below:

real GDP is below the full-employment level

real GDP exceeds the full-employment level

real GDP equals the full employment level

none of the above

Answer 1

It can be mentioned that cyclical unemployment occurs during a recession or during a downturn of Business cycle where the real GDP is less than full employment or potential employment level isl because the economy is not working at its full capacity on the whole and that is the reason why

(a) real GDP is below the full-employment level is the answer to this question

It can be mentioned that because the real GDP is below full employment level,

(b,c,d) are wronf