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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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