Daniel, Steven, and Chris work as engineers in Connecticut. The demand for engineers starts to decline as their companyâs profits start to decrease during a recession. As a result, Daniel and Steven are laid off from their jobs. Daniel and Steven would be classified as:a. frictionally unemployed. b. overemployed. c. discouraged workers. d. structurally unemployed. e. cyclically unemployed.

E. Cyclically unemployed.

Explanation:

Cyclically unemployed: It is a kind of unemployment that occurs due to decline in demand for goods and services in the market, which forces the economy to slow down and can not afford full employment, it causes employees to be laid off in companies during the period of economic contraction. It helps the company to reduce labor costs on the production of goods and services.

In the given case, Daniel and Steven are laid off from their jobs due to the recession in the economy, which is classified as Cyclically unemployed.

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