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    Question

    Consider the following types of unemployment:  

    Frictional Unemployment  Structural Unemployment  Cyclical Unemployment  Which type of unemployment is primarily caused by economic downturns and recessions? 
    A 1 only Correct Answer Incorrect Answer
    B 2 only Correct Answer Incorrect Answer
    C 3 only Correct Answer Incorrect Answer
    D 1 and 2 only Correct Answer Incorrect Answer
    E 1, 2, and 3 Correct Answer Incorrect Answer

    Solution

    • Cyclical Unemployment (3): Occurs due to economic downturns and recessions , when demand falls, leading to job losses. 
    • Frictional Unemployment (1): Happens when people switch jobs or enter the workforce . 
    • Structural Unemployment (2): Occurs when skills do not match job requirements , due to technological changes or industry decline. 

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