Unemployment that occurs during recessions and depressions are called as

Correct option is D

The correct answer is (d) Cyclical unemployment.
· Cyclical unemployment is the type of unemployment that occurs during periods of economic recessions or depressions.
· It is directly related to the economic cycle and occurs when there is a lack of demand for goods and services in the economy, leading to a reduction in production and workforce layoffs.
· During recessions, businesses cut down on labor costs as consumer spending and investment decrease, leading to higher levels of unemployment.
Information Booster:
Disguised Unemployment:
· Occurs when more people are employed than actually needed, often seen in agricultural sectors where productivity does not change even if a few workers are removed.
Frictional Unemployment:
· This is short-term unemployment that occurs when individuals are transitioning between jobs or entering the workforce for the first time.
Seasonal Unemployment:
· Arises when individuals are unemployed during certain seasons, particularly in industries like agriculture, tourism, and retail, where demand fluctuates throughout the year.