If the official unemployment rate increases in March from its February level because of sluggish sales in the auto industry, we can conclude that ____ unemployment is responsible for the increase. (Fill in the blank)
A) seasonal
B) cyclical
C) structural
D) frictional
E) any one of the causes of

Question

Quizplus · Accepted Answer

The fact that sluggish sales in the auto industry are the cause of the increase suggests that the increase is due to cyclical unemployment, which is caused by a downturn in the business cycle. Seasonal unemployment is caused by predictable seasonal fluctuations in demand for labor (e.g. holiday workers), structural unemployment is caused by a mismatch between available jobs and workers' skills, and frictional unemployment is caused by temporary transitions between jobs. While any of these types of unemployment could potentially contribute to the increase, cyclical unemployment seems to be the most likely culprit based on the specific cause given.

If the Official Unemployment Rate Increases in March from Its