The items listed below relate to either the natural rate of unemployment or cycl

Question

The items listed below relate to either the natural rate of unemployment or cyclical unemployment. Sort them correctly and be sure to place ALL items.

The items listed below relate to either the natural rate of unemployment or cyclical unemployment. Sort them correctly and be sure to place ALL items. Natural Rate of Unemployment Cyclical Unemployment Can decrease through less restrictive labor laws Can ncrease duie to reduced geograie mobiliny High-ingonveypearuine inpay meniducing this type of unemployment Low-income countries focus on reducing Associated with a recession this type of unemployment Can decrease through expansionary fiscal policy Exists when the economy is producing at its potential Can increase through contractionary monetar

Explanation / Answer

The cyclical unemployment arises due to the economic slowdown( recession).

This unemployment may be due to the following reasons;

This kind of unemployment can be decreased through expansionary fiscal policy.

This kind of unemployment can be increased through contractionary monetary policy.

This kind of unemployment is associated with the recession.

The high-income countries focus on reducing this kind unemployment.

Natural unemployment can be defined as those level of unemployment which always exists in an economy as industries expand and contract. It is also affected by the technological advancement and when the new generations enter the labor force and when workers want to change the job and so they remain for some time unemployed.

Natural Unemployment

This king of unemployment can decreases through less restrictive labor laws.

This can increase due to reduced geographic mobility.

Low-income countries focus on reducing this type of unemployment.

This kind of unemployment exist when the economy is producing at its potential level.

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