Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?


Which of the following is the most likely cause of a demand deficient unemployment (or cyclical unemployment)?
A . A fall in domestic interest rates
B . Significantly lower labor costs available in a developing country
C . Improvement in the terms of trade
D . Excess aggregate demand in the economy of a trading partner

Answer: C

Leave a Reply

Your email address will not be published.