Which type of unemployment is related to the ups and downs of the economy?
A) structural unemployment
B) frictional unemployment
C) cyclical unemployment
D) seasonal unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the economy's booms and busts. It occurs when there is a downturn in the business cycle due to a decrease in demand for goods and services, leading to layoffs and job losses. As the economy booms, businesses begin to hire again, and the rate of cyclical unemployment declines.

Which Type of Unemployment Is Related to the Ups and Downs