Final answer:
True, Frieda Bida lost her job due to a recession, which is categorized as cyclical unemployment. Cyclical unemployment happens when economic activity decreases, causing businesses to reduce their workforce. Other types of unemployment include structural and frictional, with different causes and remedies.
Step-by-step explanation:
True, Frieda Bida experiencing job loss as a result of a recession would be experiencing cyclical unemployment. This type of unemployment occurs when there is a downturn in economic activity, shrinking the demand for goods and services, which in turn leads businesses to lay off workers.
- Cyclical Unemployment: Landscapers laid off due to a decline in housing construction amid a recession.
- Structural Unemployment: Coal miners laid off because of new EPA regulations and closure of coal-fired power plants.
- Frictional Unemployment: A financial analyst voluntarily quitting to seek a job in a new location.
- Printers laid off because of a technological shift to online advertising would also be an example of structural unemployment as the industry changes due to technological advancement.
- Factory workers laid off because the production shifts to another country are facing structural unemployment due to globalization.
The remedy for cyclical unemployment is stimulating the overall buying power in the economy so that firms see potential for sales and profit, which encourages them to hire. An increase in the unemployment rate isn't always bad for a nation. Frictional unemployment is seen as natural and inevitable due to the dynamics of workers moving between jobs.