The United States experienced a deep recession between 2007 and 2009. Which type of unemployment would most likely increase during that period of recession?
A) cyclical unemployment
B) frictional unemployment
C) seasonal unemployment
D) structural unemployment

Question

Quizplus · Accepted Answer

During a recession, many businesses shut down or reduce their workforce, resulting in a decrease in demand for labor. This leads to an increase in cyclical unemployment, which is unemployment caused by changes in the business cycle. Frictional unemployment refers to the temporary unemployment that arises from workers switching jobs, seasonal unemployment is due to changes in demand for labor during particular times of the year, and structural unemployment is associated with a mismatch between the skills of the labor force and the demands of employers, which is less likely to change significantly during a recession. Therefore, (A) cyclical unemployment is the most likely type of unemployment to increase during a recession in the United States.

The United States Experienced a Deep Recession Between 2007 and 2009