In an ADAS diagram could explain a rise in cyclical unemplo

Solution

shift to the left in either AS or AD is the right answer.

Both shift in left of Aggregate demand and aggregate supply means the decline in aggregate demand and supply.

So if the aggregate supply declines and curve shifts to left, that means there is not much demand in the economy that is keeping the prices lower, so it becomes difficlut for the suppliers to sell more output at profits, so they decline supplies. So as AS declined due to sluggish economy, that meand downturn in the economy which indicates a rise in cyclical unemployment.

Now So if the aggregate demand declines and curve shifts to left, that means there is less demand in the economy which is the result of downturn in the economy which indicates a rise in cyclical unemployment.