Unemployment that occurs when there is insuﬃcient demand for the goods and services of an economy is called
A) frictional unemployment.
B) cyclical unemployment.
C) structural unemployment.
D) natural unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle, and it is characterized by a decrease in demand for goods and services, resulting in lower employment levels. This type of unemployment is often linked to economic recessions or downturns.

Unemployment That Occurs When There Is Insuﬃcient Demand for the Goods