Which of the following might cause cyclical unemployment?

Hi Kishor,

Good morning. In my opinion, cyclical unemployment can be caused by downturn in world export trade. Since, even though in the domestic market the business player are playing well, but by enhancing in the world market will help to bring foreign currency. This ultimately impact on the bringing down the exchange rate and create demand in the foreign market. Which helps to flourish business. If domestic business are getting flourish then they require more man power to meet demand. 

Economists describe cyclical unemployment as the result of businesses not having enough demand for labor to employ all those who are looking for work. The lack of employer demand comes from a lack of spending and consumption in the overall economy.

Cyclical unemployment is when workers lose their jobs during downturns in the business cycle. It generally happens when the economy contracts, as measured by Gross Domestic Product

I would say

(c) A fall in the competitiveness of UK clothing products.

But it could be partially.

(b) The replacement of coal by gas in many of the UK power stations

I really don't know what did you mean with the question, but thanks for the invitation

Sagar your answer is right

Cyclical Unemployment  A factor of overall unemployment that relates to the cyclical trends in growth and production that occur within the business cycle. When business cycles are at their peak, cyclical unemployment will be low because total economic output is being maximized. When economic output falls, as measured by the gross domestic product (GDP), the business cycle is low and cyclical unemployment will rise.

Economists describe cyclical unemployment as the result of businesses not having enough demand for labor to employ all those who are looking for work. The lack of employer demand comes from a lack of spending and consumption in the overall economy.