Involuntary unemployment that occurs due to workforce reductions during a downswing in economic activity is called:
A) cyclical unemployment.
B) frictional unemployment.
C) structural unemployment.
D) systematic unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the level of economic activity, increasing during economic downturns and decreasing during periods of economic growth. It is caused by a lack of demand for goods and services, leading to workforce reductions.

Involuntary Unemployment That Occurs Due to Workforce Reductions During a Downswing