A recession causes a decrease in the demand for housing, resulting in substantial layoffs in the construction industry. The people laid off are considered
A) structurally unemployment.
B) seasonally unemployment.
C) cyclically unemployment.
D) frictionally unemployment.

Question

Quizplus · Accepted Answer

Cyclically unemployment occurs when there is a downturn in the economy, resulting in a decrease in demand for goods and services, and thus leading to layoff of employees. In this case, the recession caused a decrease in demand for housing, which led to substantial layoffs in the construction industry.

A Recession Causes a Decrease in the Demand for Housing