An example of cyclical unemployment is a/an:
A) textile worker permanently laid off due to jobs lost to imports.
B) auto worker who is temporarily laid off due to a decline in the demand for cars.
C) engineer permanently laid off due to advances in technology.
D) computer programmer who leaves one job and accepts a new job.

Question

Quizplus · Accepted Answer

Cyclical unemployment is a type of unemployment that occurs due to fluctuations in the business cycle. When the economy experiences a recession or slowdown, demand for goods and services decreases, leading to a decrease in production and employment. In this case, the auto worker is temporarily laid off due to a decline in the demand for cars, which is a result of a cyclical downturn in the economy.

An Example of Cyclical Unemployment Is A/an