Which of the following is an example of cyclical unemployment?
A) Dora lost her job when the textile factory closed. She does not have skills to work in another industry and has been unemployed for over a year.
B) Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up.
C) George is an unskilled worker who mows lawns in the summer, but is unemployed the rest of the year.
D) Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle, where a recession or economic slowdown leads to a decrease in demand for goods and services, resulting in layoffs and unemployment. In scenario B, Marsha was laid off due to reduced demand caused by recession, which makes it an example of cyclical unemployment. Option A is an example of structural unemployment as Dora lacks the skills for another industry. Option C is seasonal unemployment as George is unemployed only in certain months. Option D is an example of frictional unemployment as Jim voluntarily quit his job and spent a month searching for a new one.

Which of the Following Is an Example of Cyclical Unemployment