The demand for video recorders falls when the economy enters a downturn. If a video recorder manufacturer sacks workers during an economic downturn, this would be an example of:

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is not enough demand for goods and services in the economy, leading to a reduction in production and the need for fewer workers. This is typical during economic downturns.

The Demand for Video Recorders Falls When the Economy Enters