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Chapter 9: Unemployment - Coggle Diagram

- - - - Expansionary monetary policy (Increase supply of money/ lower interest rates)
        Expansionary fiscal policy (Lower taxes/ raise expenditure on consumption goods and public works)
        Increasing SRAS
    - - Deficiency of effective demand
  - - - Trade unions bargain for higher wages/ minimum wage
    - - Restricting power of trade unions
        Reducing legal minimum wage
  - - - Time lag before job seekers find the
        right job or firms hire the right canditate
    - - Better Job Information
        Better employment exchange services
        Better organisational ability of management
  - - - Retraining of workforce
        Encourage growing industries to move into depressed areas
        Industrial innovations (must continue to employ the workers)
    - - Location/Skills of labour force does
        not match the available jobs
  - - - Seasonal fluctuations in the level of economy activity
        eg due to annual weather cycle, traditions and customs
    - - Spreading production evenly through the year
        Work-sharing
        Adding other lines of production/ utilising the facilities for other purposes