Question

Maria lost her job because the economy is shrinking. This is an example of _____.

Answer 1

It is an example of cyclical unemployment.

I hope this helps!

Answer 2

Maria lost her job because the economy is shrinking. This is an example of "cyclical unemployment".

Cyclical unemployment is when workers lose their positions in view of downturns in the business cycle. You can tell when the economy decreases by estimating total national output. In the event that the economy contracts for two quarters or more, it's in a recession.  

Cyclical unemployment is impermanent. It relies upon the length of the contraction. A normal recession endures around year and a half. A depression can last ten years.