Macroeconomic Issues and Analysis: An Overview - Unemployment

8 important questions on Macroeconomic Issues and Analysis: An Overview - Unemployment

How can the number of unemployment be described? 

Those of working age who are without work, but who are available for work at current wage rates. 

What effects the duration of unemployment? Name 3. 

1. Level of unemployment (stock)
2. Rate of inflow and outflow from the stock of unemployment
3. Phase of the business cycle

Name 4 types of composition of unemployment?

1. Geographical
2. Woman and man
3. Ethnic groups
4. Different age groups
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What does disequilibrium unemployment mean? 

This is when AS exceeds AD or when there is a stickiness in wages. 

Name 3 types of disequilibrium unemployment? 

1. Real wage (classical) unemployment 
2. Demand-deficient (cyclical) unemployment: fall in AD, economic recession
3. Unemployment arising from a growth in labour supply. 

What is an equilibrium unemployment? 

When people hope to find a better job or in microeconomics it doesn't match. 

Name 3 reasons for structural unemployment?

1. Change in pattern of demand
2. Regional unemployment
3. Technological unemployment

Name 2 policies to tackle unemployment?

1. Demand-side policies
2. Supply-side policies

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