ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Seasonal Unemployment
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Cyclical Unemployment
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Frictional Unemployment
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Structural Unemployment
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Detailed explanation-1: -Cyclical Unemployment During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs being available for those who want to work. Businesses experiencing weaker demand might reduce the amount of people they employ by laying off existing workers, or hiring fewer new workers.
Detailed explanation-2: -Technological unemployment is the loss of jobs caused by technological change. It is a key type of structural unemployment.
Detailed explanation-3: -What type of unemployment describes the workers’ situation? Unemployment caused by a recession, assuming the time it takes to find a job constant, is called: cyclical unemployment.
Detailed explanation-4: -Cyclical unemployment is the number of people out of work as a result of a temporary setback in the economy, such as a recession or change in a business cycle.