The Type of Unemployment That Occurs Because of a Recession

question 87

Multiple Choice

The type of unemployment that occurs because of a recession is called:

• A)​frictional unemployment.
• B)​seasonal unemployment.
• C)​the natural rate of unemployment.
• D)​cyclical unemployment.

---

Definitions:

Marginal Product Curve

A graphical representation that shows how the addition of a unit of labor or capital affects the output of production.

Money Wage Rate

The money wage rate refers to the nominal amount of money that employees receive in exchange for their labor, typically reported as an hourly or yearly salary.

Substitution Effect

The change in the consumption pattern of goods due to a change in relative prices, holding the level of utility constant.

Output Effect

The change in total output resulting from a change in input quantities or the introduction of new processes or technologies in the production.