Which of the following is an example of cyclical unemployment?
A)An autoworker is laid off because a recession has caused a decline in sales.
B)A geologist is permanently laid off from an oil company because of a technological advance.
C)A worker at a fast-food restaurant quits work and attends college.
D)A real estate agent leaves a job in Texas and searches for a similar higher-paying job in California.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to changes in the business cycle, specifically during a recession or downturn when there is a decrease in demand for goods and services. The autoworker being laid off due to a decline in sales is an example of this type of unemployment.

Which of the Following Is an Example of Cyclical Unemployment