Which type of unemployment is associated with the slump in aggregate demand that accompanies a recession?

Question

Quizplus · Accepted Answer

Cyclical unemployment, also known as demand-deficient unemployment, is associated with the decrease in economic activity during a recession or a downturn in the business cycle. It results from a decline in aggregate demand for goods and services, leading to a fall in production levels, which in turn leads to layoffs and job losses.

Which Type of Unemployment Is Associated with the Slump in Aggregate