Suppose the country of Quasiland experienced a decrease in real GDP and people were laid off from their jobs. The people would be considered part of
A) frictional unemployment.
B) cyclical unemployment.
C) structural unemployment.
D) discouraged workers.

Question

Quizplus · Accepted Answer

The decrease in real GDP and layoff of workers suggest that there is a decline in the overall level of economic activity, which is a key characteristic of cyclical unemployment.

Suppose the Country of Quasiland Experienced a Decrease in Real