________ unemployment refers to loss of jobs due to a recession or a similar downturn in the economy.
A) Frictional
B) Structural
C) Cyclical
D) Seasonal

Question

Quizplus · Accepted Answer

Cyclical unemployment is a type of unemployment that occurs due to an economic downturn, such as a recession. During a recession, aggregate demand decreases, causing businesses to reduce their production and lay off workers, thus resulting in an increase in unemployment. This type of unemployment is different from frictional and structural unemployment, which both refer to longer-term employment issues that are not related to the state of the economy. Seasonal unemployment results from seasonal fluctuations in demand and is not related to the state of the overall economy.

________ Unemployment Refers to Loss of Jobs Due to a Recession