21
QuizMultiple Choice

Macroeconomics — Test

Question 21 • Economics

As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Choose two correct answers.

Answer
A
still employed
B
unemployed
C
domestically unemployed
D
cyclically unemployed
E
structurally unemployed
F
frictionally unemployed

Explanation

David is unemployed because he lost his job and is no longer working. Since decreased production caused the job loss, he is cyclically unemployed: this type of unemployment results from reduced demand during an economic downturn. “Structurally unemployed” would instead point to a mismatch between workers’ skills and available jobs.

AI-written and checked against the verified answer.

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