Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment best describes the workers' situation

Question

Business

Bruce Sanders

31 March, 18:37

Workers at a car-manufacturing plant in Flint, Michigan are laid off because the economy is weak and GM cars aren't selling well. GM isn't sure when the plant will reopen. What type of unemployment best describes the workers' situation

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Answers (2)

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Ollie · Answer 1

A)

Explanation:

Based on the scenario being described within the question it can be said that the type of unemployment that best describes this would be Cyclical Unemployment. This term refers to unemployment that is caused when the overall demand that exists in a market for the goods and services cannot support full employment within the economy. Such as in this case since the economy is weak and ultimately caused these individuals to lose their jobs.

Khloe Santos · Answer 2

Cyclical unemployment

Explanation:

Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction. Cyclical unemployment is directly related to the level of macroeconomic activity, which is the aggregate, or combined, activity of all persons and entities involved in an economy.