The increase in unemployment that occurs during recessions and depressions is called
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) normal unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs during downturns in the business cycle, when demand for goods and services falls and firms respond by laying off workers. This leads to an increase in unemployment that is directly tied to the economic recession or depression. Frictional and structural unemployment are more long-term and not directly tied to the business cycle, while "normal" unemployment is a bit ambiguous without further context.

The Increase in Unemployment That Occurs During Recessions and Depressions