The type of unemployment that occurs because of a recession is called:
A)frictional unemployment.
B)seasonal unemployment.
C)the natural rate of unemployment.
D)cyclical unemployment.

Question

The type of unemployment that occurs because of a recession is called:
A)​frictional unemployment.
B)​seasonal unemployment.
C)​the natural rate of unemployment.
D)​cyclical unemployment.

Quizplus · Accepted Answer

Cyclical unemployment refers to the unemployment that occurs as a result of business cycle fluctuations such as a recession or economic downturn. It is different from frictional and seasonal unemployment, which are caused by individual factors such as people switching jobs or seasonal changes in employment demand, and from the natural rate of unemployment, which is the level of unemployment that is consistent with stable inflation in long term.

The Type of Unemployment That Occurs Because of a Recession