Question

Unemployment that occurs when there is deficient demand for the goods and services of an economy is called Multiple Choice cyclical unemployment structural un natural unemployment frictional unem

Answer 1

Correct answer: Cyclical unemployment Reason: Unemployment occurs when an individual able and willing to work couldn't find a job Cyclical unemployment occurs when the demand for goods and services is not matched with the full employment in an economy. This happens when economic growth is slow During the periods of slow economic growth, consumers demand fewer goods and services and producers also produce less to meet the demand. Thus, production level fall and producers require less labor for production process. Hence, unemployment rises during deficit demand for goods and services