Ch43 Employment and Unemployment

Front

What is full employment?

Back

Full employment is where all those who wish to work have jobs, excluding frictional unemployment.

Front

What is equilibrium unemployment?

Back

Equilibrium unemployment occurs when the labour market is in equilibrium; any unemployment is voluntary, frictional, or structural.

Front

What is disequilibrium unemployment?

Back

Disequilibrium unemployment is when the aggregate supply of labour is greater than the aggregate demand for labour at the current wage rate.

Front

What is the natural rate of unemployment?

Back

The natural rate of unemployment is when the aggregate demand for labour equals the aggregate supply of labour at the current wage rate and price level.

Front

What factors determine the natural rate of unemployment?

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Supply-side factors such as the value of unemployment benefits, quality of education and training, and information on job vacancies.

Front

What is voluntary unemployment?

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Voluntary unemployment is when workers refuse the work that is available because they do not consider the job or pay to be suitable.

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What is involuntary unemployment?

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Involuntary unemployment is when workers have made every effort to find work, will accept whatever work they are offered, but are unable to secure a job.

Front

What is occupational mobility?

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Occupational mobility is the ability of workers to move from one occupation to another occupation.

Front

What is geographical mobility?

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Geographical mobility is the ability of workers to move to a job in a different location.