Topic 11 - Economic Performance Flashcards
6 types of unemployment
Seasonal,frictional, cyclical , technological , structural , regional
What is seasonal unemployment
Unemployment based on the time of the year
What is frictional unemployment
The time spent in between jobs
What is cyclical unemployment
Unemployment based on the level of aggregate demand
What is structural unemployment
Mismatch of skills and job opportunities as a result of demand changing in a country
What is regional unemployment
Occurs in certain areas of the country because of products or industries that exist their
What is technological unemployment
The loss of jobs caused by technological change
What is voluntary unemployment
A situation when worker choose not to work at the current equilibrium wage rate
Examples of why workers may elect not to participate in work
Excessively generous welfare benefits, high rates of tax income, workers seeking better employment conditions
Factors that determine real wage unemployment
Trade unions, national minimum wage
