Explanation:

Cyclical unemployment is unemployment that results when the overall demand for goods and services in an economy cannot support full employment. It occurs during periods of slow economic growth or during periods of economic contraction. It relates to the irregular ups and downs, or cyclical trends in growth and production, as measured by the gross domestic product (GDP), that occur within the business cycle. Hence option c is the correct answer.
• When economic activity increases, we call this an expansionary phase of the business cycle because it represents economic growth. Unemployment tends to drop during periods of growth because consumers are buying more and businesses are producing and selling more. These increases in production and sales usually require more people, resulting in increased hiring and an overall reduction of the rate of unemployment.
• When economic activity slows, or contracts, unemployment will increase. During times of slow growth, no growth or a period of economic contraction, a recession, demand for products and services declines. Employers make less, sell less and don't need as many employees. Employers will lay off those employees who are not needed, which raises the unemployment rate. This increase in unemployment  can lead to a problematic feedback loop where unemployed people can no longer afford to buy stuff, which means that demand decreases even further and more people are laid off, leading to even less demand and so on.