In an economic expansion,people used their credit cards to purchase many goods.But now the economy is in recession,people must use much of their reduced incomes to pay back debts.If employees manufacturing the goods people used to buy are laid off,they will suffer from:

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Cyclical unemployment occurs when there is a downturn in the business cycle, leading to a decrease in demand for goods and services, and therefore a decrease in demand for labor. In this case, as people are using their reduced incomes to pay back debts instead of purchasing goods, the demand for goods decreases, leading to layoffs of employees manufacturing those goods. These laid off employees will thus suffer from cyclical unemployment.

In an Economic Expansion,people Used Their Credit Cards to Purchase