Question 1
The increase in unemployment that occurs during recessions and depressions is called
◦ frictional unemployment.
◦ structural unemployment.
◦ cyclical unemployment.
◦ normal unemployment.
Question 2
Cyclical unemployment is the
◦ portion of unemployment that is due to changes in the structure of the economy that result in a significant loss of jobs in certain industries.
◦ unemployment that occurs during recessions and depressions.
◦ portion of unemployment that is due to the normal working of the labor market.
◦ unemployment that results when people become discouraged about their chances of finding a job so they stop looking for work.