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- Subject
- Labour Marketeconomics-mcqs › labour-market
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
What action might the government take to address cyclical unemployment in the economy?
Multiple choice question for Labour Market. Select an option, then review the explanation below.
Explanation
When cyclical unemployment occurs, the government often aims to stimulate economic activity. Encouraging savings can increase the funds available for investment, which helps boost economic growth and reduce unemployment.
More Labour Market MCQs
Practice related questions from the same subject.
- 1.How do unions typically contribute to widening the wage gap between union members and non-union workers?
- 2.Under which circumstance can unions enhance efficiency?
- 3.Which of the following reasons explains why companies might choose to pay efficiency wages?
- 4.Which of the following government actions is least likely to decrease the unemployment rate?
- 5.What happens if the wage rate is set above the competitive equilibrium wage for any reason?