The increase in unemployment associated with a recession is called:
A) structural unemployment.
B) frictional unemployment.
C) discouraged unemployment.
D) cyclical unemployment.
E) temporary unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment refers to the increase in unemployment that occurs during a recession due to a decrease in demand for goods and services. Structural unemployment is typically caused by changes in the economy, such as advances in technology or changes in consumer preferences, while frictional unemployment is associated with workers transitioning between jobs. Discouraged and temporary unemployment are not typically associated with a recession.

The Increase in Unemployment Associated with a Recession Is Called