Concept:The diagram illustrates changes in unemployment caused by fluctuations in overall economic activity, known as the trade or business cycle.
Explanation:The dotted line in the diagram represents the rise and fall of the economy over time.
When the economy moves upward, output expands and unemployment falls.
When the economy moves downward, output contracts and unemployment rises.
This movement follows the phases of boom and recession.
Unemployment caused by such swings in the business cycle is called cyclical unemployment.
It is not due to job switching, skills mismatch, or worker choice, but due to the general state of the economy.
Answer:B. cyclical unemployment.
