Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Structural unemployment
B
Frictional unemployment
C
Cyclical unemployment
D
Seasonal unemployment
Understanding the Answer
Let's break down why this is correct
Answer
The type of unemployment primarily addressed by achieving full employment equilibrium is called cyclical unemployment. This kind of unemployment happens when there is not enough demand for goods and services in the economy, leading to job losses during economic downturns. Full employment equilibrium means that the economy is operating at its best, where everyone who wants to work can find a job, and businesses are thriving. For example, during a recession, many people may lose their jobs because companies are not selling enough products, but when the economy improves, those jobs can come back, reducing cyclical unemployment. So, achieving full employment helps ensure that everyone has the opportunity to work, balancing the economy and making it stronger.
Detailed Explanation
Cyclical unemployment happens when the economy is doing poorly. Other options are incorrect because Some think structural unemployment is the main issue; Frictional unemployment is often confused with cyclical.
Key Concepts
cyclical unemployment
Topic
Full Employment Equilibrium
Difficulty
easy level question
Cognitive Level
understand
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