Unemployment

What type of unemployment depends on the business cycle?

• cyclical

• frictional

• seasonal

• structural

What are solutions to the cyclical unemployment?

• lowering taxes to increase consumption

• hanging flyers to encourage consumption

• there is no solution

• increasing interest rates

What are the causes of structural unemployment

• technological changes

• globalization

• laws governing the labor market (ex. short documentation for firing workers)

• new jobs being created

What are solutions for frictional and seasonal unemployment?

• improved flow of information between employers and possible workers

• having more workers

• having a human-resources branch

• reducing unemployment benefits

Natural rate of unemployment =

• cyclical unemployment + seasonal unemployment + frictional unemployment

• structural unemployment + cyclical unemployment

• structural unemployment + seasonal unemployment + frictional unemployment

• seasonal unemployment + frictional unemployment

What applies to the fact that wages are "sticky downwards"?

• while workers wages can easily increase, it is less likely they will fall

• while workers wages can easily increase, they can even more easily fall

• one of the reasons is that lower wages make workers less productive

• one of the reasons is lack of trade union power

Whataretheconcernsconnectedtodemand-sidepolicies?

• • no guarantee that disposable income will be spent

• • with low consumer confidence, people may save (low AD)

• • there will be immediate effects

• the disposable income will be spent quickly

What is the definition of unemployment

• people of working age who are without work, available for work and actively seeking employment

• people who are actively seeking employment, regardless of their age

• people who are without work and available for work

Choose all the outflows of the "pool" of unemployment

• People who retire

• People who pass away

• People who have resigned

• People who have immigrated into the country but have not found a job yet

• People who go back into education

How to calculate the rate of unemployment?

• number of unemployed/total labour force

• number of unemployed/total labour force * 100

• total labour force/number of unemployed

• total labour force/number of unemployed * 100