Cyclical unemployment is caused by: MCQ with Answer and Explanation

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Cyclical unemployment is caused by:

A. seasonal changes

B. lack of aggregate demand during economic downturns

C. trade union pressure

D. mismatch of skills

Answer: Option B

Solution (By JKSSB Mock Tests)

Cyclical unemployment is caused by deficient aggregate demand during recessions.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

Which of the following is NOT a function of the Reserve Bank of India?

A. Formulating fiscal policy

B. Controlling credit

C. Acting as banker to the government

D. Issuing currency notes

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Correct Answer: Option A

Explanation:
Fiscal policy is formulated by the government (Ministry of Finance). RBI is responsible for monetary policy, currency issue, banker to government and credit control.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Goods and Services Tax Council' is a constitutional body under which article?

A. Article 279A

B. Article 356

C. Article 324

D. Article 280

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Correct Answer: Option A

Explanation:
The GST Council is constituted under Article 279A.

This question belongs to: Economy GK Economy Set 1

Question #3

The Reserve Bank of India acts as lender of last resort by:

A. providing funds to banks when they cannot obtain funds from other sources

B. lending only to the central government

C. issuing currency against gold

D. giving loans to the public at low interest

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Correct Answer: Option A

Explanation:
The RBI as lender of last resort provides funds to banks facing liquidity crises when other sources are unavailable.

This question belongs to: Economy GK Economy Set 1

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