Final answer:
Cyclical unemployment is the type of unemployment caused by business recessions. It is a temporary form of unemployment that occurs when there is a decline in economic activity.
Step-by-step explanation:
The unemployment that is caused by business recessions is called cyclical unemployment. This type of unemployment occurs when there is a decline in economic activity, resulting in a decrease in demand for goods and services. During a recession, businesses may lay off employees or reduce hiring, leading to an increase in unemployment rates.
Cyclical unemployment is a temporary form of unemployment that is directly linked to economic cycles. It can be mitigated by implementing policies that stimulate the economy and encourage businesses to expand and hire more workers.