Question

Explain what is cyclical unemployment and make an estimate of cyclical unemployment during the recession.

Provide any conclusion regarding the movement and gap between unemployment rate of people with advanced education vs. basic education.

Answer 1

Cyclical unemployment depends upon the cycle of economy which can be at a state of recession or economic expansion.

Cyclical unemployment is generally occured in recession. For example like an automobile worker laid down his job during recession. During downturn of economy people will buy less vehical so the manufacturing doesn't need much workers to meet the demand.

Cyclical unemployment is temporary in nature.

Yes, there is a gap between the people with advance education in compare to people with basic education.

. As people with advance education will have more job opportunity than with the basic ones.

. In today's world advance education is more required than basic and a business will always choose a advance educated person.

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