Cyclical unemployment refers to

Question

a. the portion of unemployment created by wages set above the equilibrium level.
b. the portion of unemployment created by job search.
c. changes in unemployment due to changes in the natural rate of unemployment.
d. short-run fluctuations around the natural rate of unemployment.

Answer 1

Cyclical unemployment refers to:

d. short-run fluctuations around the natural rate of unemployment.

Cyclical unemployment is linked to the economic cycle, where unemployment rises during downturns and falls during recoveries.