Which example illustrates cyclical unemployment?
A) An autoworker is laid off because a recession has caused a decline in sales.
B) A geologist is permanently laid off from an oil company because of a technological advance.
C) A worker at a fast-food restaurant quits work and attends college.
D) A real estate agent leaves a job in Texas and searches for a similar, higher-paying job in California.

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle, such as recessions or economic downturns. In this scenario, the autoworker is laid off because of a decline in sales, which is a result of the recession. B is an example of technological unemployment, C is an example of frictional unemployment, and D is an example of geographical unemployment.

Which Example Illustrates Cyclical Unemployment