"People don't have any money to spend on cool gadgets," stated an analyst reporting on the technology industry in 2008. He expected Silicon Valley (where many technology- based firms are located) to shed up to 10% of its workforce as a result of poor sales and declining profits for those fir For example, advanced Micro Devices planned to lay off 3% of its workforce while Applied Materia planned to cut its staff by 12%.
These job losses in the technology industry are an example of unemployment.
A) frictional
B) cyclical
C) structural
D) both frictional and structural

Question

Quizplus · Accepted Answer

The job losses in the technology industry were a result of poor sales and declining profits, indicating a downturn in the business cycle. This type of unemployment is known as cyclical unemployment.

"People Don't Have Any Money to Spend on Cool Gadgets