Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Cyclical Unemployment
B
Structural Unemployment
C
Long-term Unemployment
D
Seasonal Unemployment
Understanding the Answer
Let's break down why this is correct
Answer
The type of unemployment that mainly occurs during economic downturns is called cyclical unemployment. This happens when the economy is not doing well, and businesses earn less money, leading them to lay off workers. During a recession, many people may find it hard to get jobs because there are fewer job openings available. For instance, if a factory needs to cut costs due to low sales, it might reduce its workforce, resulting in more people being unemployed. Additionally, long-term unemployment can occur if people remain jobless for an extended time, making it harder for them to find new work, especially if the economy is also undergoing structural changes, like shifts in what jobs are available.
Detailed Explanation
Cyclical unemployment happens when the economy is not doing well. Other options are incorrect because Some might think structural unemployment is the same as cyclical; Long-term unemployment refers to people who are out of work for a long time.
Key Concepts
cyclical unemployment
structural unemployment
long-term unemployment
Topic
Unemployment Rates and Economic Indicators
Difficulty
hard level question
Cognitive Level
understand
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