Which of the following best describes cyclical unemployment?

Cyclical unemployment occurs as a direct result of the ups and downs in the economic cycle. This type of unemployment is characterized by job losses that happen when there is a downturn in the economy, such as during a recession. During these times, businesses experience decreased demand for goods and services, leading to layoffs and subsequently higher unemployment rates. This is in contrast to other forms of unemployment, which are driven by different factors—seasonal unemployment is affected by specific times of the year, structural unemployment relates to skill mismatches in the labor market, and frictional unemployment is temporary, associated with individuals transitioning between jobs. Therefore, the correct choice captures the essence of cyclical unemployment by linking it directly to economic fluctuations.