Recessions and expansions affect most strongly which type of unemployment?
A) structural unemployment
B) seasonal unemployment
C) cyclical unemployment
D) frictional unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment is closely related to the business cycle, meaning it increases during recessions and decreases during expansions. It is caused by a decrease in aggregate demand, leading to a decrease in demand for labor, and results in workers being laid off or not being hired.

Recessions and Expansions Affect Most Strongly Which Type of Unemployment