Auto workers laid off from Hot-Rod Autoworks as the result of a recession are considered
A) structurally unemployed.
B) cyclically unemployed.
C) frictionally unemployed.
D) seasonally unemployed.

Question

Quizplus · Accepted Answer

The scenario described is an example of cyclical unemployment, which is caused by fluctuations in the business cycle or economic downturns. As a result of the recession, demand for Hot-Rod Autoworks' products decreased, leading to layoffs of workers. These workers are temporarily without work due to economic conditions outside their control, making them cyclically unemployed.

Auto Workers Laid Off from Hot-Rod Autoworks as the Result