Types of unemployment

    Cards (13)

    • What is seasonal unemployment?
      It occurs when some jobs are not available all year round.
    • Why might a ski worker experience sectional unemployment?
      Because they will be out of work during the summer.
    • What is frictional unemployment?
      It occurs when a worker is between jobs.
    • Who might experience frictional unemployment?
      A university graduate who is unhappy in their current job and leaves.
    • How can firms encourage graduates to apply for positions?
      By promoting internships and graduate positions.
    • What is structural unemployment?
      It occurs when there is a mismatch between the skills workers have and the skills firms demand.
    • What can cause structural unemployment?
      Changes in technology that make a worker's skills no longer needed.
    • What is sectoral change in the context of unemployment?
      It refers to job losses when industries relocate or move abroad.
    • How can the government help workers affected by structural unemployment?
      By investing in education and training for those whose skills are outdated.
    • What is cyclical unemployment?
      Unemployment that occurs due to declining aggregate demand during a recession.
    • What happens to consumption and investment during a recession?
      They typically fall, leading to a decrease in aggregate demand.
    • How can a central bank respond to cyclical unemployment?
      By lowering interest rates to encourage higher consumption and investment.
    • What fiscal policy can a government implement to combat cyclical unemployment?
      By increasing government spending to stimulate the economy.
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