______ unemployment occurs with changes in economic activity over the business cycle.

The correct answer is Cyclical.

Key Points

• Cyclical unemployment is a shortage of employment brought on by fluctuations in the business cycle of an economy.
• High unemployment rates are primarily a result of cyclical unemployment.
• It results from a contraction in the business cycle.
• It is a normal cycle of economic growth's ups and downs that happens over time.
• Temporary cyclical unemployment is based on how long an economic downturn brought on by a recession lasts.
• You should anticipate frequent changes in the economy if you work in business or finance.
• These cycles may have a big impact on spending, which could harm your business or sector.
• You may make sure that a company enterprise experiences fewer negative effects by foreseeing these changes.
• Business cycles could last just a few days or several years. 

Additional Information

• The length of a trade cycle is determined by how long it takes to complete each of its five stages.
• The recession stage of the economy starts when the boom phase ends and economic activity declines.
• It continues until the GDP reaches the point where the expansion stage begins.
• During a recession, demand may drop almost immediately, but producers might not change their output until the market supply is abundant.
• Frictional:
  • ​Transitions in voluntary employment within an economy might lead to frictional unemployment.
  • A brief period of unemployment is produced as employees decide to switch jobs and as new workers join the workforce for the first time.
  • The frictional unemployment rate is computed by dividing the workers actively looking for jobs by the total labour force.
  • Those who have recently left their occupations, those who are reentering the workforce, and newcomers are the three groups of people who are actively looking for work.
• Structural:
  • When the abilities that people in the economy can supply do not match the skills that companies are looking for in employees, structural unemployment results (also known as the skills gap).
  • Technological advancements that render many workers' job abilities obsolete frequently cause structural unemployment.
  • One of the three types of unemployment identified by economists—the other two being frictional unemployment and cyclical unemployment—is structural unemployment.
• Technological:
  • ​The loss of work as a result of technical development is known as technological unemployment.
  • This important category is structural unemployment.
  • The role of people in technological transformation is often reduced as "mechanical-muscle" devices or more effective "mechanical-mind" processes (automation) replace labor-intensive ones.