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.

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