Question

what advice would you give someone who is cyclically unemployed?

Answer 1

Cyclic unemployment is the component of overall unemployment that results directly from cyclic of economic upturn and downturn. In period of recession, unemployment rises whereas in period of ecomic expansion, unemployment declines. It occurs when an economy's output deviates from potential GDP.When an economy's output is higher than the level of potential GDP, resouces are utilised at higher levels higher than normal and cyclic unemployment is negative. when an economy's output is lower than the level of potential GDP, resources are utilised at lower level than normal and cyclic unemployment is positive.  

when people lose their jobs during a recession are said to be cyclic unemployment. It is of 18 months or average i.e short term process and is a normally process as a economy expands and contracts. So i advice if a people who is cyclically unemloyed can either wait for the exapansion growth or can search for the new job or start new business by taking loan . usually it is out of control, so government must usually step in to stop. Government can expand monetary policy. Government can lower interest rate to influence the economy. Lower interest can make loans cheaper which can encourage new business and boost market confidence.