Lefrada, a Luxury Watchmaker, Stops Production for Three Months and Lays

Multiple Choice

Lefrada, a luxury watchmaker, stops production for three months and lays off 30 employees because of a sharp decline in its sales during the period of recession. In the given scenario, the laid off employees are facing _____.

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