The demand for refrigerators falls when the economy enters a downturn. If a refrigerator manufacturer lays off workers during an economic downturn, this would be an example of:

Question

Quizplus · Accepted Answer

The demand for refrigerators falling during an economic downturn is an example of cyclical unemployment, which is caused by fluctuations in the business cycle. The manufacturer laying off workers due to a decrease in demand is also an example of cyclical unemployment.

The Demand for Refrigerators Falls When the Economy Enters a Downturn