unemployment p2

Question 1

what are the benefits of unemployment

Answer 1

employers get a larger pool of workers to choose from

Question 2

what are some negatives of unemployment

Answer 2

fall in demand
decrease level of human skills
increased gov spending on the benefits claimed

Question 3

what are some demand side policies to reduce unemployment

Answer 3

lower interest rates
lower exchange rates
lower direct taxes

Question 4

what are some supply side policies to reduce unemployment

Answer 4

Increased spending on education & training

Changes to tax and benefits to improve incentives to work

Question 5

what are some consequences of decrease unemployment

Answer 5

Incomes flowing into households will grow which will lead to more AD

bop will be unbalanced

Question 6

2 causes of structural unemployment

Answer 6

Geographic immobility - can’t get there

Occupational immobility - limited skill