The country of Trevanvia goes through a period of recession, which leaves a large number of people unemployed due to extensive layoffs by companies. The companies use the strategy of job termination to cut down their costs and reduce their output as the people are now more cautious with their spending. In the given scenario, the layoffs exemplify _____.

Question

Quizplus · Accepted Answer

The layoffs in Trevanvia are due to a recession, which is a period of economic downturn. Cyclical unemployment occurs when there is not enough demand for goods and services in the economy, leading to job losses.

The Country of Trevanvia Goes Through a Period of Recession