Cyclical unemployment is the
A) portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries.
B) unemployment that occurs during recessions and depressions.
C) portion of unemployment that is due to the normal working of the labor market.
D) unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.

Question

Quizplus · Accepted Answer

Cyclical unemployment is unemployment that occurs due to fluctuations in the business cycle or economic cycle, which refers to the regular pattern of ups and downs in economic activity. During a recession or depression, businesses may reduce their production, leading to layoffs and an increase in unemployment. Therefore, option B is the correct choice. Option A refers to structural unemployment, option C refers to frictional unemployment, and option D refers to discouraged workers.

Cyclical Unemployment Is the