Which type of unemployment is Sarah experiencing?
Sarah lost her job at the bank because the economy is in a BLANK (boom, expansion , recession) . This layoff is an example of BLANK (cyclical, frictional, structural) unemployment.
Sarah lost her job at the bank because the economy is in a recession. his layoff is an example of cyclical unemployment.
Boom and expansion means the economy is growing. If it was growing, then Sarah wouldn't have lost her job, so those 2 choices are incorrect. Structural unemployment is when an employee doesn't meet the skill set of a job and is fired. That is not the case for Sarah. Frictional unemployment is basically the waiting period of an individual for another job. That does not apply to Sarah either.
Thus, the answers for the blanks are recession and cyclical.
