Which of the following is an example of cyclical unemployment?

Question

BlackTom AI · Accepted Answer

To tackle the question, we first recall what cyclical unemployment means: it arises from shortfalls in economic activity during a downturn, causing job losses across the economy.
Option 1: 'A worker loses her job because the minimum wage increases substantially.' This scenario is more aligned with structural or policy-driven changes in the labor market, potentially affecting employment in specific sectors, not cyclical unemployment.
Option 2: 'A worker quits her current job in order to look for one that better matches her skills.' This describes voluntary turnover or search-based frictional unemployment, where a worker is between jobs or transitioning, not caused by a downturn.
Option 3: 'A worker is unemployed because the cost of finding a job in another city is too high.' This reflects a barrier to mobility or a personal frictions issue, which relates to search or geographic mobility costs, not to the overall business cycle.
Option 4: 'A worker loses her job because the economy enters a recession.' This directly ties unemployment to a decline in aggregate demand and economic activity, which is the hallmark of cyclical unemployment.
In summary, the description that ties unemployment to a recession aligns with cyclical unemployment, while the other options illustrate structural, frictional, or mobility-related causes rather than cyclical fluctuations in the economy.

Which of the following is an example of cyclical unemployment?单项选择题

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