The economy of Cassiopeia revolves around tourism. Statistics reveal that the un

Question

The economy of Cassiopeia revolves around tourism. Statistics reveal that the unemployment rates for the months of January through March are significantly higher than the other months of the year. Which of the following, if true, can explain this? O A. Frictional unemployment was at its lowest during the three month period from January to March compared to the rest of the year, O B. The number of people who opted out of the labor force increased during January to March. O C. The economy operated at full employment throughout the year. 0 D. The unemployment data is not seasonally adjusted. O E. Cassiopeia witnessed a fall in the number of tourists throughout the year.

Explanation / Answer

Since the data shows that the unemployment was high from January to march in Cassiopeia compare to other months in the year. It means it may be due to the cyclical unemployment. This kind of unemployment arises due to non-harvest season or the time during which the farmers have no work for doing, therefore many of them become unemployed during the non-agriculture season.

Hence it can be said that high unemployment was due because the unemployment data is not seasonally adjusted.

Hence option D is the correct answer.

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