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During an economic recession, which type of unemployment is likely to increase?

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Question

During an economic recession, which type of unemployment is likely to increase?

Options

  • Cyclical Unemployment

  • Structural Unemployment

  • Frictional Unemployment

  • Disguised Unemployment

MCQ
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Solution

Cyclical Unemployment

Explanation:

Cyclical unemployment rises during periods of low demand for goods and services caused by economic downturns.

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