Question

An example of cyclical unemployment is a(n): 1 point geologist who is permanently laid off from an oil company due to a new technological advance. real estate agent who leaves a job in Texas and searches for a similar, higher paying job in California. autoworker who is laid off from an automobile company due to a decline in sales caused by a recession. worker at a fast-food restaura

Answer 1

Answer:

autoworker who is laid off from an automobile company due to a decline in sales caused by a recession.

Explanation:

Unemployment rate refers to the percentage of the total labor force in an economy, who are unemployed but seeking to be gainfully employed. The unemployment rate is divided into various types, these include;

I. Natural Rate of Unemployment (NU).

II. Frictional unemployment rate (FU).

III. Structural unemployment rate (SU).

IV. Actual unemployment rate (AU).

V. Cyclical unemployment rate (CU).

A cyclical unemployment can be defined as a type of unemployment which is typically related to changes in the business, economy or industry cycle such as recession, governmental policies etc.

Mathematically, cyclical unemployment rate can be calculated using the formula;

$CU = AU - NU$

An example of cyclical unemployment is an autoworker who is laid off from an automobile company due to a decline in sales caused by a recession.