The Country of Trevanvia Goes Through a Period of Recession

Multiple Choice

The country of Trevanvia goes through a period of recession, which leaves a large number of people unemployed due to extensive layoffs by companies. The companies use the strategy of job termination to cut down their costs and reduce their output as the people are now more cautious with their spending. In the given scenario, the layoffs exemplify _____.

A) seasonal unemployment
B) structural unemployment
C) frictional unemployment
D) cyclical unemployment