Unemployment

Question 1

Full employment

Answer 1

Does not mean everyone who wants a job has one

Frictional unemployment likely to persist

At YFE still some seasonal, frictional , structural bit no demand deficient unemployment

Number of jobs = number of people wanting to work

Question 2

Underemployment

Answer 2

Workers who want to work longer hours than offered

Workers are overqualified for there position

Question 3

Hysteresis

Answer 3

When workers become unemployed , loss of output is not only immediate they also lose skills , if long term unemployed

As resault if they find work during recovery they ll be less productive thus pace of future recovery and economic growth will be weaker