Which of the following is the best example of cyclical unemployment?
A)An ironworker cannot find a job in Ottawa because all job vacancies are in Alberta.
B)A worker quits her current job to search for a better one.
C)Bank tellers are unable to find jobs due to technological advances in the banking system.
D)A worker is laid off because his firm had to reduce production due to reduced demand.
E)Inflationary pressures have led to higher wages for all jobs.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by fluctuations in the business cycle, specifically downturns or recessions. When there is reduced demand for goods and services, firms may have to lay off workers to reduce production. Therefore, a worker being laid off due to reduced demand is the best example of cyclical unemployment. A, B, C, and E are not examples of cyclical unemployment. A is an example of geographical unemployment, B is an example of frictional unemployment, C is an example of technological unemployment, and E is an example of inflationary unemployment.

Which of the Following Is the Best Example of Cyclical