Which of the following is the best example of cyclical unemployment?
A)A worker is laid off because his firm had to reduce production due to reduced demand.
B)A worker quits her current job to search for a better one.
C)An ironworker cannot find a job in Alberta because all job vacancies are in Quebec.
D)Bank tellers are unable to find jobs due to technological advances in the banking system.
E)Inflationary pressures have led to higher wages for all jobs.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to changes in the business cycle such as recessions or reduced demand for goods and services. Therefore, a worker being laid off due to reduced demand is the best example of cyclical unemployment. B is an example of frictional unemployment, as the worker is voluntarily searching for a better job. C is an example of structural unemployment, as the worker's skills and location do not match the available job vacancies. D is an example of technological unemployment, where workers are replaced by machines. E is not an example of any type of unemployment, but rather a result of inflation.

Which of the Following Is the Best Example of Cyclical