Unemployment caused by the fluctuation of the business cycle is called _ unemployment.
A) structural
B) frictional
C) recession- related
D) cyclical

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by the fluctuations of the business cycle, where jobs are lost during periods of economic contraction and regained during periods of expansion. Structural unemployment is caused by a mismatch between the skills of the workforce and the available jobs, while frictional unemployment is caused by the natural turnover of the labor market as workers search for better job opportunities. Recession-related unemployment is a type of cyclical unemployment that occurs specifically during a recession.

Unemployment Caused by the Fluctuation of the Business Cycle Is