Question

Which of the following situations would be considered cyclical unemployment? Choose one or more: A. A typewriter repair shop closes, citing lack of business. The owner is quoted as saying, "We haven’t had a customer in weeks. It has something to do with people using computers." B. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on by a weak economy. C. A recent college graduate cannot find a job anywhere, despite excellent qualifications. The news media report that there are not enough jobs to go around in the economy. D. A friend is taking a trip around the world while she waits for another job offer. She has been offered six jobs but has not accepted any of them. E. A friend wins the lottery and quits working. He says he will never work again. F. A college instructor’s contract is not renewed because more people are taking online classes and the college does not need as many classroom instructors.

Answer 1

The correct answer is the option B

Explanation: Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction.When economic activity slows, or contracts, unemployment will increase. During times of slow growth, no growth or a period of economic contraction, a recession, demand for products and services declines. Employers make less, sell less and don't need as many employees.