Which type of unemployment is likely to increase the most in a recession?
A)frictional unemployment
B)seasonal unemployment
C)structural unemployment
D)cyclical unemployment
E)employment

Question

Quizplus · Accepted Answer

Cyclical unemployment is the type of unemployment that is most sensitive to changes in the business cycle. During a recession, there is a decrease in aggregate demand for goods and services, resulting in a decrease in production and employment. This leads to job losses and an increase in the number of individuals who are involuntarily unemployed, which is known as cyclical unemployment. Therefore, D is the correct choice.

Which Type of Unemployment Is Likely to Increase the Most