Which of the following is an example of cyclical unemployment

Please answer 13,14, 15 and 16
13. Which of the following is an example of cyclical unemployment? a. b. c. d. A recent college graduate still looking for her first job A car salesman who loses his job because of a recession A ski instructor who is out of work during the summer An economies journalist who just quit her writing job in order to begin a new career as a college professor next month A worker displaced from his factory job because of greater mechanization in the workplace e. The natural rate of unemployment is the unemployment rate that would exist in the absence of a. structural unemployment. b. underemployment. c. cyclical unemployment. d. frictional unemployment e. seasonal unemployment 14. 5. In the ATM model, if the probabilty of loss or theft decreases, then the number of days between visits to AT a. rises;rises b. risesfalls Mand the quantity of money demanded c. falls;falls d. falls rises . In the liquidity-preference model, an increase in peoples income causes the moneycurve to shift a. supply right b. supply;left c. demand left d. demand:right


1) “B” A car salesman out of job due to recession is an example of cyclical unemployment. It is the type of unemployment which is caused because of the business cycle of recession and boom.   2) “C” The natural rate of unemployment always there in the market but we can record it in the time when there is no cyclical unemployment. The natural rate of unemployment consists of structural and frictional unemployment. 3) “A” As the chances of loss and theft have decreased people will keep more money in the hand and less in the ATM this will decrease or fall in the number of visits to the ATM and increase the demand for money. The Gap between the ATM visits will increase and money demand will rise. 4) “D”

Increase in the income of people will cause the money demand curve to shift to the right. They will be demanding more money at the given rate of interest which will lead to an increase in the rate of interest to maintain the equilibrium.

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