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2 types of unemployment and demand-pull inflation (TYPES OF UNEMPLOYMENT,…
2 types of unemployment and demand-pull inflation
TYPES OF UNEMPLOYMENT
Frictional Unemployment
when people are between jobs or are entering or re-entering labour force
Example
people voluntarily quit their jobs to look for other suitable employment
categories of people
people actively seeking for jobs
fresh graduates entering the labour force
people that quit their jobs to find other jobs
better position and HIGHER wages
Cyclical Unemployment
when there is a lack of jobs, resulting in downside in business cycle or recession
demand for goods and services decrease
companies close down
workers laid off
involuntary
continues until the economy is out of recession
Demand-pull inflation
occurs when aggregate demand (AD) exceeds the aggregate supply (AS)
Demand-pull inflation graph
