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19 October, 09:24

The deviation of unemployment from its natural rate is called

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  1. 19 October, 13:11
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    Cyclical Unemployment

    Explanation:

    When the overall unemployment occurs due to economic upturns and downturns, it is called cyclical unemployment. In conditions when there is cyclical or irregular trend in growth in production, cyclical unemployment occurs. Unemployment tends to rise when there is recession and declines when there is economic boom. Cyclical unemployment becomes problematic since it contributes to total unemployment.
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