When the economy slows down and real GDP falls, the type of unemployment that will be directly affected is the:
A) natural rate of unemployment.
B) cyclical unemployment.
C) frictional unemployment.
D) structural unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly affected by changes in the business cycle, specifically when the economy experiences a downturn and real GDP falls. This type of unemployment is caused by lack of demand for labor due to decreased production and economic activity.

When the Economy Slows Down and Real GDP Falls, the Type