The type of unemployment that occurs because of a recession is called
A) frictional unemployment.
B) seasonal unemployment.
C) natural unemployment.
D) cyclical unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by fluctuations in the business cycle, particularly a recession where there is a significant decrease in overall economic activity and a rise in unemployment rates. This is in contrast to frictional unemployment (people looking for better job opportunities), seasonal unemployment (jobs that are only available during certain times of the year), and natural unemployment (structural changes in the economy that can lead to a mismatch between available jobs and workers).

The Type of Unemployment That Occurs Because of a Recession