A downward change in the economy can result in an increase in:

Question

Quizplus · Accepted Answer

A downward change in the economy, such as a recession or a slowdown, typically leads to a decrease in demand for goods and services, which can cause firms to reduce their production and lay off workers. This type of unemployment, resulting from a decline in economic activity or a business cycle, is known as cyclical unemployment. Therefore, choice A is the best answer. Structural unemployment refers to mismatches between the skills or qualifications of job seekers and the requirements of available jobs, and is not directly related to the business cycle. Seasonal unemployment refers to temporary joblessness that occurs due to predictable changes in the demand for labor over the course of a year. Frictional unemployment is the result of people resetting their careers or looking for new jobs voluntarily, and is considered a normal part of the job search process.

A Downward Change in the Economy Can Result in an Increase