Unemployment caused by a recession is called:
A) structural unemployment.
B) frictional unemployment.
C) involuntary unemployment.
D) cyclical unemployment

Question

Quizplus · Accepted Answer

Unemployment caused by a recession is called cyclical unemployment. This type of unemployment is due to a decline in economic activity and demand, which leads to layoffs or reduced hiring. It is an involuntary form of unemployment because workers are losing their jobs due to economic circumstances beyond their control. Structural unemployment refers to a mismatch between the skills workers have and the jobs available, while frictional unemployment is due to the natural turnover in the labor market as workers search for new jobs.

Unemployment Caused by a Recession Is Called