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Subject
Labour Marketeconomics-mcqs › labour-market
Published
1 Jun 2019
Last updated
28 May 2026

Browse all Labour Market MCQs

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.

Choose the correct answer

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.

Practice related questions from the same subject.

  1. 1.How do unions typically contribute to widening the wage gap between union members and non-union workers?
  2. 2.Under which circumstance can unions enhance efficiency?
  3. 3.Which of the following reasons explains why companies might choose to pay efficiency wages?
  4. 4.Which of the following government actions is least likely to decrease the unemployment rate?
  5. 5.What happens if the wage rate is set above the competitive equilibrium wage for any reason?

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