Involuntary unemployment caused by a decrease in the overall level of economic activity is:
A) cyclical unemployment.
B) seasonal unemployment.
C) frictional unemployment.
D) structural unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is directly related to the level of economic activity in the economy. It increases during a recession when there is a decrease in demand leading to a reduction in production and thus, layoffs.

Involuntary Unemployment Caused by a Decrease in the Overall Level