costs and benefits of unemployment

Question 1

costs of unemployment

Answer 1

-fall in output
-social costs: riots, homelessness
-deterioration of gov finances
-lower demand for foreign exports (damage foreign companies)
-lost income
-hysterisis

Question 2

benefits of unemployment

Answer 2

-larger pool of workers to choose from
-lower inflation
-better CA deficit
-workers are able to choose a more sustainable/long term employment position

Question 3

evaluation of unemployment

Answer 3

-rate (natural or not)
-type
-duration
-distribution
-level of benefits