Cyclical unemployment occurs when
A) workers are fired.
B) workers quit their jobs to raise a family.
C) the economy slows down, and workers are laid off.
D) workers retire earlier than age 66.

Question

Quizplus · Accepted Answer

Cyclical unemployment happens due to fluctuations in the business cycle. When the economy slows down, companies lay off workers, creating unemployment. The other options, such as workers being fired, quitting to raise a family, or retiring early, are not necessarily related to the business cycle.

Cyclical Unemployment Occurs When