Q.Which of the following types of unemployment is linked directly to a downturn in the business cycle?

Cyclical unemployment is the type directly linked to the business cycle, rising during a downturn and falling during recovery. …

Cyclical unemployment is, by definition, the unemployment that fluctuates WITH the phases of the business cycle: it rises during a recession or slowdown, when falling aggregate demand causes firms to cut production and lay off workers, and it falls again during recovery and boom phases as demand and output pick up. This is exactly the pattern described in the question — a downturn in the business cycle directly raising unemployment. …

Picking "structural" because both structural and cyclical unemployment can appear together during a prolonged slump — the distinguishing test is whether unemployment falls again once demand and o …