During the great recession of 2007 to 2009, the U.S unemployment rate increased to about 10.2 percent. A big part of the increase in unemployment during this recession can be attributed to an increase in the _____ unemployment.
A) seasonal
B) structural
C) cyclical
D) frictional

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the rate of growth in the economy and occurs when there is not enough demand for goods and services in the economy to provide jobs for everyone who wants to work. During the Great Recession, the significant downturn in economic activity led to a decrease in demand for goods and services, resulting in higher cyclical unemployment.

During the Great Recession of 2007 to 2009, the U