Question

Who is cyclically unemployed?

Select one:

a. Katrina, an assistant manager who quit her job to search for a better job closer to home

b. Samantha, who quit her job to return to college to earn her MBA

c. Kathy, a steelworker who was laid off but has stopped looking for a new job because she can't find a new job

d. David, a new car salesman who lost his job because the economy went into a recession

e. Casey, who lost his job because the technology changed so he was no longer needed

Answer 1

Answer

Option d

A job is lost because of economic slowdown or recession but the person is finding a job is called cyclically unemployed.

Katrina is frictionally unemployed as she is switching job.

Samantha is not in the labor force as not looking for a job

Kathy is a discouraged worker who is not in the labor force as stopped looking for a job after looking for it.

Casey is structurally unemployed as the job is lost because of technological change.