Which of the following is an example of cyclical unemployment?
A) Qadir is employed in the summer as a lifeguard but cannot find a position in the winter
B) Quincy left his job in Dallas to search for a new job in Idaho
C) Quinlan worked as an engineer until he was laid off because of a decrease in aggregate demand
D) Quinn has few job-related skills so she is never hired even though she continues to apply

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by a decrease in aggregate demand, leading to layoffs and a decrease in employment levels. Quinlan's unemployment due to a decrease in demand for engineers is an example of cyclical unemployment.

Option A is an example of seasonal unemployment caused by fluctuations in demand during different seasons.

Option B is an example of frictional unemployment caused by voluntary job searching and the time taken to find the right job.

Option D is an example of structural unemployment caused by a mismatch between job requirements and the skills of the job seeker.

Which of the Following Is an Example of Cyclical Unemployment