Which Statement Best Explains How Unemployment Relates to Business Cycles

Multiple Choice

Which statement best explains how unemployment relates to business cycles?

A) Unemployment can be eliminated through economic policies when the economy grows at normal rates.
B) Unemployment only exists during periods of economic slowdown.
C) Cyclical unemployment is inversely related to short-run economic fluctuations.
D) Unemployment is unrelated to short-run economic fluctuations.