Unemployment

Question 1

What 3 factors control unemployment

Answer 1

government - using policies

firms - control workforce

employees - opptimise opportunities

Question 2

conflicts between macro policies

Answer 2

government priorities change

objectives depend on a countries stage of development

rising standards of living

nothing in macroeconomics happens in isolation

a government may satisfice (tolerate trade offs)

Question 3

supply side policies to reduce unemployment

Answer 3

education and training
geographical subsidies
labour market reforms
employment subsidies
reduce power of trade unions

Question 4

demand side policies to reduce unemployemnt

Answer 4

monetary policy - cutting interest rates to boost AD
fiscal policy - cut tax/increase governemnt spending to boost AD
depreciation of exchange rate - to boost export demand

Question 5

how can you measure unemployment

Answer 5

number of people who claim unemployment benefits (claimant count method)

labour force survey

international labour organisation