Show the different kinds of unemployment, Macroeconomics

Assignment Help:

Q. Show the Different kinds of unemployment?

All unemployed individuals are presumed to belong to exactly one of these categories so that if we sum unemployment from each category we would get the total unemployment. We define unemployment rate for the above categories for example we define the frictional unemployment rate as frictional unemployment divided by the total labor force and in the same way for the other categories.   

Clearly it is often tough to determine exactly which category an unemployed individual belongs to and official measures of unemployment in each category don't exist. 

Nevertheless, this classification is very convenient in economics. If unemployment increases in a certain city because of a firm relocating production, its structural unemployment that increases (originally, part of it is frictional), and if unemployment increases owing to a recession, it's the cyclical unemployment which has increased. Knowing what kind of unemployment is currently present is significant when considering what kind of measures to take to lower unemployment.

573_Show the Different kinds of unemployment.png

Figure: Different kinds of unemployment


Related Discussions:- Show the different kinds of unemployment

Aggregate demand policies, Aggregate Demand Policies Both fiscal and m...

Aggregate Demand Policies Both fiscal and monetary policy changes shift the AD curve. Let us see how, starting with a fiscal expansion. See figure 6.2. In the upper panel, the

Investment., whwt is the difference between the fixed accelerator and the f...

whwt is the difference between the fixed accelerator and the flexible accelerator theories of investment?

Define nominal wages, Q. Define Nominal wages? The nominal wage is wage...

Q. Define Nominal wages? The nominal wage is wage per unit of time in the currency used in the country- what we usually just call wage. When we mention wage in macroeconomics w

Baumol model, what is the role of advertising in baumol''s model?

what is the role of advertising in baumol''s model?

Public sector, Are there any current subsidy or welfare issues that are bei...

Are there any current subsidy or welfare issues that are being discussed or addressed in parliament or in municipalities

Implement sap to improve processes, Explain how a Fortune 500 company has b...

Explain how a Fortune 500 company has been able to implement SAP to improve their processes. Suppose the supply function for product X is given by Qsx = -50 + 0.5Px - 5Pz. A.

Find real interest rate and nominal interest rate, Assume that an economy's...

Assume that an economy's GDP Y=5000. Also assume that the government runs a deficit where tax revenue T=1000 and government expendituresG= 1500. The consumption function is represe

Describe effects of hours spent studying, Design a hypothetical ideal rando...

Design a hypothetical ideal randomized controlled experiment to study the effects of hours spent studying on performance on microeconomics exams. Suggest some impediments to implem

Perfectly competitive firm, Explain why a perfectly competitive firm does n...

Explain why a perfectly competitive firm does not expand its sales without limit if its horizontal demand curve indicates that it can sell as much as desires at the current market

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd