Distinguish between frictional, structural and cycliscla unemployment by citing
ID: 1201680 • Letter: D
Question
Distinguish between frictional, structural and cycliscla unemployment by citing one example in each case. What are the other general names for frictional and structural unemployment? 2. A small frictionas place has a stable population of 2000 people of which 1000 are in labor force. Of these 1000 peope, 950 are employed and the rest5 are unemployed. What is the unemployment rare? #3. Draw the five different phases of a business cycle and mention production, emplyment, investment, prices and wages in each of these (whether these measures are up or down and why) #14. Draw immediate short nan, short run and long run Aggregate Supply curve in the same graph and mention what are the changing measures and which are the constant in each of these segments. #6 In the following three graph, AD and AS curves are the "before" curves AD and AS are the "after" ones; based on these, answer the next three questions: a. A recession is shown by which graph? b. Cost push inflation is depicted by which graph? c. Growth, full emplyment and stability is shown by which graph? # 7 A new machine having useful life of obly one year costs $80,000 and the net additional revenue from this machine is expected to be $96,000. What is the expected rate of return? # 8 If consumer price index falls from 120 to 116 in a year, calculate the deflation rate = #9 If actual GDP is $50 b with a negabtive GDP gap $10 b; the potential GDP is = #10. If potential GDP is $33b. And a positive GDP gap is $3b.: then the actual GDP =Explanation / Answer
Frictional unemployment is defined as the unemployment that occurs because of people moving or changing occupations. Demographic change can also play a role in this type of unemployment since young or first-time workers tend to have higher-than-normal turnover rates as they settle into a long-term occupation. An important distinguishing feature of this type of unemployment, unlike the two that follow it, is that it is voluntary on the part of the worker. for example : Frictional unemployment can be illustrated by someone who leaves their current job to look for another. Until they successfully find and begin another job, they are temporarily unemployed.Another example would be a recent college grad who suddenly becomes available in the job market, but has yet to find his first job.
FRICTIONAL UNEMPLOYEMENT IS ALSO CALLED SEARCH UNEMPLOYEMENT.
Structural unemployment is defined as unemployment arising from technical change such as automation, or from changes in the composition of output due to variations in the types of products people demand. For example, a decline in the demand for typewriters would lead to structurally unemployed workers in the typewriter industry.It arises because of technological change.
cyclical unemployment is defined as workers losing their jobs due to business cycle fluctuations in output, i.e. the normal up and down movements in the economy as it cycles through booms and recessions over time.
In a recession, frictional unemployment tends to drop since people become afraid of quitting the job they have due to the poor chances of finding another one. People that already have another job lined up will still be willing to change jobs, though there will be fewer of them since new jobs are harder to find. However, they aren’t counted as part of the unemployed. Thus, the fall in frictional unemployment is mainly due to a fall in people quitting voluntarily before they have another job lined up.
But the drop in frictional unemployment is relatively small and more than offset by increases in cyclical and structural unemployment.