An example of cyclical unemployment is a(n):
A) textile worker permanently laid off due to job lost to imports.
B) autoworker who is temporarily laid off due to a decline in demand for cars.
C) engineer permanently laid off due to advances in technology.
D) computer programmer who leaves one job and accepts a new job.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by changes in the business cycle, such as recessions or economic downturns, which lead to a decline in demand for goods and services. This results in businesses reducing production and laying off workers, which can lead to temporary unemployment. Option B of an autoworker who is temporarily laid off due to a decline in demand for cars is an example of cyclical unemployment. Options A, C, and D are examples of structural, technological, and frictional unemployment, respectively.

An Example of Cyclical Unemployment Is A(n)