Which of the following types of unemployment is directly associated with insuﬃcient overall demand for goods and services?
A) search unemployment
B) wait unemployment
C) cyclical unemployment
D) frictional unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly associated with insufficient overall demand for goods and services. As the overall demand for goods and services decreases during an economic recession, businesses may have to lay off their workers due to reduced demand for their products or services. This results in cyclical unemployment.

Which of the Following Types of Unemployment Is Directly Associated