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WAEC Economics 1996 Question 21

Question 21

Labour Market

The unemployment associated with decrease in demand is referred to as

  1. A.disguised
  2. B.imposed
  3. C.cyclical
  4. D.voluntary
  5. E.functional
Show the answer and explanation

Answer: C (cyclical)

Explanation

Cyclical unemployment occurs when aggregate demand falls during a depression or recession.