If the official unemployment rate increases from February to March because of sluggish sales in the automobile industry,then the increase can be blamed on:
A)seasonal unemployment.
B)cyclical unemployment.
C)structural unemployment.
D)frictional unemployment.
E)underemployment.

Question

Quizplus · Accepted Answer

Cyclical unemployment is caused by fluctuations in the business cycle, such as a decrease in demand for goods or services leading to a decrease in employment. The slowdown in the automobile industry suggests a decrease in demand, leading to a rise in unemployment, which is cyclical in nature.

If the Official Unemployment Rate Increases from February to March