Question : Which of the following unemployment is the result of depression in an economy?

Option 1: Cyclical unemployment

Option 2: Frictional unemployment

Option 3: Seasonal unemployment

Option 4: Structural unemployment


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Cyclical unemployment


Solution : The correct option is Cyclical Unemployment.

The type of unemployment that is the result of a depression or a prolonged economic downturn is called " Cyclical Unemployment ". During a recession or economic depression, businesses may cut back on production, leading to a decline in demand for labour, resulting in job losses and cyclical unemployment.

Know More About

Related Questions

TOEFL ® Registrations 2024
Apply
Accepted by more than 11,000 universities in over 150 countries worldwide
Manipal Online M.Com Admissions
Apply
Apply for Online M.Com from Manipal University
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books