Suppose the demand for construction jobs declines drastically during a recession. The resulting unemployment is called _____.
A) classical unemployment
B) structural unemployment
C) cyclical unemployment
D) frictional unemployment

Question

Quizplus · Accepted Answer

Cyclical unemployment occurs due to fluctuations in the business cycle, such as during a recession, when demand for goods and services declines, leading to job losses in affected sectors like construction.

Suppose the Demand for Construction Jobs Declines Drastically During a Recession