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Poverty and Unemployment · IB ACIO · Question 56 of 60

Poverty and Unemployment: Job losses that rise during recessions due to falling aggregate demand reflect

Step-by-step solution. Poverty and Unemployment for IB ACIO.

Topic
Poverty and Unemployment
Subject
General Studies
Difficulty
moderate
Solve Time
45-60 sec

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Q · Poverty and Unemploymentmoderate · 45s

Job losses that rise during recessions due to falling aggregate demand reflect:

TopicPoverty and Unemployment
Question Typemultiple choice
Difficultymoderate
Marking+1 / −0.33
Test Duration30 min

Step-by-Step Solution

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Meaning: Cyclical unemployment follows the business cycle, increasing in downturns.Correct Option Justification: B is correct as it is tied to macroeconomic contractions.Incorrect Options:A. Frictional is due to job search/transition, not recessions.B. Structural stems from skill or technology mismatches.C. Hidden unemployment refers to discouraged workers not counted in official metrics.

Final Answer: Option B - Cyclical unemployment
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Job losses that rise during recessions due to falling… - Poverty and Unemployment (General Studies) Solved Question