Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Employment - Growth, Informalisation and Other Issues

Question:
What is unemployment caused by economic fluctuations known as?
Options:
Frictional unemployment
Disguised unemployment
Cyclical unemployment
Urban unemployment
Correct Answer:
Cyclical unemployment
Explanation:
Cyclical unemployment is a subset of overall unemployment that arises directly from economic cycles of ups and downs. During recession, unemployment tends to grow, but during boom, it tends to fall.