2021 · Q56
Which one among the following statements is not correct?
indian-polity-economyeconomy-fundamentals
- AWhen the economy grows slowly than its potential, the unemployment rate rises.
- BStructural employment occurs when jobs are eliminated by changes in demand for particular goods or due to automation.
- CRecession in the economy leads to cyclical unemployment.
- DAt full employment, the measured unemployment rate is negative.
Explanation
The phenomenon described in statement B — jobs eliminated by changes in demand for particular goods or by automation — is termed structural unemployment in economics; 'structural employment' is not a recognized concept, so statement B is not correct. Statements A and C use standard textbook definitions of the growth-unemployment link and cyclical unemployment. The question tests this precise terminology. Hence B is the not-correct statement.