Final answer:
Cyclical unemployment is at its lowest during the expansion stage of the trade cycle when the economy is growing and businesses are hiring more workers to meet increasing demand.
Step-by-step explanation:
Cyclical unemployment is a type of unemployment that occurs due to fluctuations in the business cycle. It is highest during recessions, when the economy is contracting and businesses are laying off workers. Therefore, cyclical unemployment would be at its lowest during the expansion stage of the trade cycle, when the economy is growing and businesses are hiring more workers to meet increasing demand.
For example, during an expansion, businesses may be expanding their production capacity and hiring new employees to meet the rising demand for their products or services. This increased demand leads to a decrease in unemployment rates because more people are able to find jobs. On the other hand, during a recession, businesses may be cutting back on production and letting go of employees, resulting in higher unemployment rates.
Therefore, the correct answer is B. Expansion.