Which type of unemployment is Sarah experiencing? Sarah lost her job at the bank because the economy is in a . This layoff is an example of unemployment.

This question is incomplete, it misses the options. The options are the following:

For the first question:

a) boom

b) expansion

c) recession

For the second question:

a) cyclical

b) frictional

c) structural

And the correct answer are the options B and A: recession and cyclical.

Explanation:

To begin with, when an economy is in recession that means that the whole production of it is slowing down because of the economic policies taken, due to the context of it and many other factors. Therefore that, when an economy is in recession the rate of unemployment increases due to the decrease of the production and that type of unemployment is known as cyclical because it relates to the process that the economy is going through.

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