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    Unemployment caused by the recession of 2008-2010 is an example of which of the following types of unemployment?
    Question

    Unemployment caused by the recession of 2008-2010 is an example of which of the following types of unemployment?

    A.

    Classical

    B.

    Structural

    C.

    Frictional

    D.

    Cyclical

    Correct option is D

    The answer is (d).
     Unemployment caused by the recession of 2008-2010 is an example of Cyclical type of unemployment.
     Cyclical unemployment can be caused by a recession, which is a period of negative economic growth. Cyclical unemployment can also be caused by downturns in a business cycle in which demand for goods and services decreases over time.
     While Structural unemployment can be the result of a lack of skills for workers or technological advances that have put workers out of a job.

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