When various firms fail because their output is not demanded by society, workers may suffer
A)structural unemployment.
B)frictional unemployment.
C)seasonal unemployment.
D)cyclical unemployment.

Question

Quizplus · Accepted Answer

This scenario describes a situation of cyclical unemployment, which occurs due to changes in the business cycle and the resulting decrease in demand for goods and services. As firms fail and output decreases, workers may be laid off or have reduced hours, leading to unemployment. This type of unemployment is often addressed through government policies aimed at stimulating economic growth and increasing demand for goods and services.

When Various Firms Fail Because Their Output Is Not Demanded