News Story: Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars are not selling well.GM isn't sure when the plant will reopen.What type of unemployment describes the workers' situation?

Question

Quizplus · Accepted Answer

The workers' situation is an example of cyclical unemployment, which occurs when there is a lack of demand for goods and services in the economy, leading to a decrease in production and the need for fewer workers. In this case, the weak economy and poor sales of GM cars have resulted in layoffs.

News Story: Workers at a Car-Manufacturing Plant in Flint, Michigan