Which type of unemployment is likely to increase the most during an economy's recession?
A) frictional unemployment
B) seasonal unemployment
C) structural unemployment
D) cyclical unemployment
E) underemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment tends to increase during a recession because it is caused by a decline in overall economic activity and a decrease in demand for goods and services. Frictional, seasonal, and structural unemployment are largely caused by factors outside of the business cycle and do not necessarily increase during a recession. Underemployment may increase during a recession as workers may have to settle for lower-paying or part-time jobs, but it is not a type of unemployment in and of itself.

Which Type of Unemployment Is Likely to Increase the Most