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Unemployment - Coggle Diagram
Unemployment
Business cycle
Boom
boom, as the name implies, is a period in which the GDP rises higher than its previous long-term trend. It signifies increased productivity, higher sales, and thus, higher wages. This may result in higher inflation (increase in price of goods and services).
Slowdown
A slowdown, the opposite of a boom, is a period marked by decreased GDP, lower sales, lower market demand, and thus, lower inflation.
Recession
This is a period of decline in the output of an economy for two successive quarters. This can have long-lasting effect on wages, the stock market, and the population as a whole.
Recovery (expansion)
This period generally goes after a recession and is a sign of improvements in an economy following a decrease in output.
Depression
This signifies a long-term economic downturn in the activity of a market. It is much more severe and persistent than a recession.
Types of unemployment
Frictional unemployment
Frictional unemployment occurs as a result of people voluntarily changing jobs within an economy. Similarly, graduates just entering the workforce add to frictional unemployment.
Cyclical unemployment
Cyclical unemployment is the variation in the number of unemployed workers over the course of economic upturns and downturns, such as those related to changes in oil prices.
Structural unemployment
Structural unemployment comes about through technological change in the structure of the economy in which labor markets operate. Technological changes—such as the replacement of horse-drawn transport by automobiles or the automation of manufacturing—lead to unemployment among workers displaced from jobs that are no longer needed.
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Effect on unemployment
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Social problem (drug abuse, alcoholism)
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