Question

Sales Position: Self-Motivated individual needed to sell new homes being built in the Lakefront area. Salary based on commission and experience. Kris applies for the sales position and does well. However, she is laid off in late October due to slow sales. This is an example of what type of unemployment?

Answer 1

Answer:

The correct answer is: Cyclical unemployment.

Explanation:

To begin with, the term of ''cyclical unemployment'' in the field of economics, refers to the situation of unemployment of a society that happens due to the recessions of the economy, when there is not enough aggregate demand to provide jobs for every person looking for one. That is, that the demand of job depends basically in the demand of the goods and if the economy is going bad then the products or services will not be demanded, such as the case that the sales of the houses have been slowing down. Therefore that the type of unemployment that Kris is suffering is cyclical unemployment.