A worker who loses his or her job as a consequence of a decline in aggregate demand in the economy is experiencing:
A)disguised unemployment.
B)underemployment.
C)cyclical unemployment.
D)frictional unemployment.
E)seasonal unemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment refers to the changes in employment resulting from fluctuations in the business cycle, particularly from the contraction phase where there is a decline in the aggregate demand. Thus, a worker who loses his or her job as a consequence of a decline in aggregate demand is experiencing cyclical unemployment.

A Worker Who Loses His or Her Job as a Consequence