Asked by Chris Turner on Jun 30, 2024

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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.

Cyclical Unemployment

A type of unemployment that relates to the cyclical trends in the economy, fluctuating with the business cycle's contraction and expansion phases.

Automobile Industry

A sector of the economy focused on the manufacturing, design, marketing, and selling of motor vehicles.

Unemployment Rate

The share of the labor market that is unemployed and searching for a job actively.

  • Understand the linkage between economic phases and the different types of unemployment.
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ZK
Zybrea KnightJul 03, 2024
Final Answer :
B
Explanation :
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.