Cyclical unemployment
What Cyclical unemployment means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Cyclical unemployment
Check what you remember
Read the wording for your board, then hide it and explain Cyclical unemployment in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
Unemployment that falls when an outward shift in aggregate demand increases real output, as firms hire more workers.
Topics that use Cyclical unemployment
- The AD/AS model (Pearson Edexcel A-Level)
Related terms
- Aggregate Demand (AD)
- Cost-push inflation
- Costs of production
- Demand-pull inflation
- Factors of production
- Full capacity output
- Macroeconomic equilibrium
- Movement along the AD curve
Using Cyclical unemployment in the exam
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