Which description fits a worker who is cyclically unemployed?

Prepare for the MoCA Business Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Cyclically unemployed refers to individuals who lose their jobs due to downturns in the economy, often associated with recessions. When economic conditions worsen, companies may reduce their workforce to cut costs. This type of unemployment is linked directly to the cyclical trends of the economy, where periods of economic growth are followed by contractions.

In this context, Kristen, who is laid off due to job cuts in a recession, perfectly exemplifies cyclical unemployment. Her job loss is a direct result of the overall decline in economic activity, which leads to reduced demand for goods and services, prompting employers to downsize.

In contrast, other options describe different types of unemployment. A teacher taking a sabbatical is not unemployed in the cyclical sense, as this is a voluntary break from work. A seasonal worker during the off-season experiences seasonal unemployment, which occurs in predictable cycles based on specific times of the year. Lastly, a software engineer pursuing further education is not considered unemployed but is instead engaged in skill development, which is a managerial or proactive career decision rather than a consequence of economic downturns.

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