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Economics · Oct / Nov 2024 · Paper 12 · Question 21

2281Employment and unemployment

What causes cyclical unemployment in a recession?

  1. Aa permanent decrease in the demand for labour
  2. Ba permanent decrease in the supply of labour
  3. Ca temporary decrease in the demand for labour
  4. Da temporary decrease in the supply of labour

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Correct answer: C. a temporary decrease in the demand for labour

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