Which example illustrates 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 university.
D) A real estate agent leaves a job in Montreal and searches for a similar,higher paying job in Toronto.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs during economic downturns when businesses reduce their production, which leads to a decline in demand for their products and services. This decline in demand causes workers to lose their jobs, as seen in the example of the autoworker being laid off due to a recession.

Which Example Illustrates Cyclical Unemployment