The rise in unemployment in India due to the 2008 financial crisis was an example of:
Show answer & explanation
Correct answer: D
Explanation
The correct answer is option 4 i.e. structural unemployment
- Structural unemployment: This is a category of unemployment resulting from an imbalance between the jobs available in the market and the skills of workers.
- Seasonal Unemployment: This is a type of unemployment which is seen during certain seasons of the year.
- Cyclical unemployment: This is a result of the business cycle, where unemployment increases during recessions and decreases with economic growth.
- Involuntary Unemployment: It is a state in which a person is prepared to work at a real wage lower than the prevailing real wage, whether or not he is willing to work at a lower cash wage.