Question

Which of the following is an example of cyclical unemployment?
A. A worker loses her job because the economy begins to enter a recession.
B. A worker loses her job because the minimum wage increases substantially.
C. A worker is unemployed because the cost of finding a job in another city is too high.
D. A worker quits her job to find a better job.

Answer 1

Answer:

a. A worker loses her job because the economy begins to enter a recession

Explanation:

Cyclical unemployment is unemployment that is compromised by fluctuations in the economic activity of a country.

Cyclical unemployment depends on the economic cycle that a country's economy is going through at a given time. In stages of recession or crisis, cyclical unemployment increases while in phases of expansion they decrease.

In economic terms, it is said that cyclical unemployment is a fluctuation in the unemployment rate with respect to its natural rate, that is, the unemployment rate that cannot be reduced and is considered normal in an economy.