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- Subject
- Labour Marketeconomics-mcqs › labour-market
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Which action is the government likely to take in order to decrease cyclical unemployment?
Multiple choice question for Labour Market. Select an option, then review the explanation below.
Explanation
To combat cyclical unemployment, governments often implement policies that stimulate economic activity. Reducing government expenditure typically decreases overall demand, which can worsen cyclical unemployment rather than reduce it. Therefore, cutting government spending is not an effective measure to lower cyclical 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?