Which type of unemployment is likely to increase the most during an economy's recession?
A)Frictional unemployment
B)Seasonal unemployment
C)Structural unemployment
D)Cyclical unemployment
E)Underemployment

Question

Quizplus · Accepted Answer

During a recession, there is a decrease in economic activity which leads to a reduction in demand for goods and services. This leads to reduced profits for businesses, and they may respond by laying off workers, leading to an increase in cyclical unemployment.

Which Type of Unemployment Is Likely to Increase the Most