Which of the following situations would be counted as cyclical unemployment? (a)
ID: 1215746 • Letter: W
Question
Which of the following situations would be counted as cyclical unemployment?
(a) Frances stops working when the theme park where she worked closes at the end
of summer to go to school full-time.
(b) Charles was retired but just started to look for a job after he lost half his
retirement savings Bernie Madoff’s ponzi scheme.
(c) John can’t find work as a construction worker but there are lots of job openings
at the local hospital.
(d) Last month there were ten million people without jobs and looking for work, but
only four million job openings.
Explanation / Answer
(d) Last month there were ten million people without jobs and looking for work, but only four million job openings.
Cyclical unemployment is the unemployment which occurs due to different cycles in the economy like recession, boom, etc.
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