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JAMB Economics 1993 Question 47

Question 47

Labour Market

What type of unemployment is revealed by the dotted lines on the graph above?

Diagram for this question
  1. A.Frictional unemployment
  2. B.Cyclical unemployment
  3. C.Circular unemployment
  4. D.Underemployment
Show the answer and explanation

Answer: B (Cyclical unemployment)

Explanation

The dotted line rises and falls opposite to output over the trade cycle: unemployment caused by booms and slumps is cyclical.