How do lower interest rates typically affect cyclical unemployment and real income in the short run?

Lower interest rates make borrowing money cheaper for both consumers and businesses. When people can borrow money easily, they are more likely to spend on things like homes, cars, and other goods. This increase in spending helps businesses grow and often leads them to hire more workers, which can reduce cyclical unemployment. As more people get jobs and earn money, real income in the economy tends to rise because people have more money to spend. For example, if a family buys a new car because they can get a low-interest loan, that purchase supports the car dealership and may lead to the hiring of more sales staff.