Unemployment Flashcards
1
Q
Supply-Side Unemployment
A
NRU, Frictional, Seasonal, Structural
2
Q
Demand-Side Unemployment
A
Unemployment caused by lack of AD (Cyclical or demand deficient)
3
Q
Frictional Unemployment
A
In between jobs
4
Q
Structural Unemployment
A
Immobilities in labour market (e.g: wrong skills)
5
Q
Real Wage Unemployment
A
Wages above equilibrium
6
Q
Geographical Unemployment
A
Geographical immobility of labour
7
Q
Voluntary Unemployment
A
People choosing to stay on benefits
8
Q
Seasonal Unemployment
A
Less work in ‘off season’
9
Q
Demand-Deficient Unemployment
A
Unemployment§ arising from economic slowdown & less demand in the economy
10
Q
Why is labour a derived demand?
A
Employers demand for labour is derived from consumers demand for goods and services
