In an economic expansion, people used their charge cards to purchase many goods. Now the economy is in a recession and people must use much of their reduced incomes to pay back debts. If employees manufacturing the goods people used to buy are laid off, they will suffer from:

Question

Quizplus · Accepted Answer

The situation described in the question is an example of cyclical unemployment, which occurs as a result of fluctuations in the business cycle. In this case, the recession has caused decreased demand for goods, which in turn has led to layoffs of the employees manufacturing those goods. This type of unemployment is typically temporary and more common during periods of economic downturn.

In an Economic Expansion, People Used Their Charge Cards to Purchase