Which of the following is the best example of cyclical unemployment?
A)A worker is laid off because his firm had to reduce production due to reduced demand.
B)A worker quits her current job to search for a better one.
C)An ironworker cannot find a job in Ottawa because all job vacancies are in Alberta.
D)Bank tellers are unable to find jobs due to technological advances in the banking system.
E)Inflationary pressures have led to higher wages for all jobs.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs when there is a downturn in the business cycle, leading to reduced demand for goods and services, and subsequently, a decrease in demand for labor. A worker being laid off due to reduced demand is an example of cyclical unemployment.

Which of the Following Is the Best Example of Cyclical