Question

Tony loses his job because of the trend of businesses moving work to other countries. This scenario is an example of which type

Answer 1

Answer:

The correct answer is D. This scenario is an example of cyclical unemployment.

Explanation:

Cyclical unemployment is the type of unemployment caused by declining productivity . When the general demand for one or another type of goods decreases, it inevitably leads to the restriction of production of the same type of goods and to the restriction of employment. This type of unemployment is considered unfavorable from the point of view of modern business theory. In a high-level economy, the rate of cyclical unemployment should be zero, meaning there should be no unemployment, but this is not the case.