Question

A recession causes a decrease in the demand for​ housing, resulting in substantial layoffs in the construction industry. This is an example of A. cyclical unemployment. B. frictional unemployment. C. seasonal unemployment. D. structural unemployment.

Answer 1

Option A....cyclical unemployment

Answer 2

The correct answer is letter "A": cyclical unemployment.

Step-by-step explanation:

The change in job accessibility due to ups and downs during the business cycle is called cyclical unemployment. Cyclical unemployment is lowest while the economy is healthy and booming. Cyclical unemployment is at its peak while the economy is in recession.