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Economic Recessions in the Combined WS-PS and Multiplier Model
Cyclical Unemployment (Demand-Deficient Unemployment)
Cyclical unemployment, which is also referred to as demand-deficient unemployment, is the portion of joblessness that is above the economy's equilibrium unemployment rate. It is specifically caused by a decline in aggregate demand, a characteristic feature of a business cycle recession.
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Introduction to Macroeconomics Course
Ch.4 Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Cyclical Unemployment (Demand-Deficient Unemployment)
Impact of Labor Market Slack on Wage-Setting in a Recession
Absence of Automatic Private Sector Stabilization After a Demand Shock
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An economy is initially in a state where the number of unemployed individuals is stable and primarily consists of those between jobs or with skills that do not match available positions. A sudden, sharp decline in consumer and business confidence leads to a significant reduction in overall spending on goods and services across the country. Based on this information, which statement best analyzes the resulting change in the labor market?
Analyzing Labor Market Changes in an Economy
Identifying Unemployment in a Recession
The Mechanism of Cyclical Unemployment
Consider an economy where a major technological innovation suddenly makes the skills of a large group of specialized factory workers obsolete. This leads to significant job losses within that specific industry, even while overall consumer spending and business investment across the rest of the economy remain strong. The resulting increase in joblessness is correctly classified as demand-deficient unemployment.
Match each economic scenario with the primary type of unemployment it describes.
Arrange the following events in the logical sequence that explains the emergence of demand-deficient unemployment during an economic downturn.
Unemployment that increases when the economy enters a recession and decreases during an expansion, resulting directly from a widespread drop in spending on goods and services, is referred to as ____ unemployment.
Evaluating Policy Responses to Unemployment
Evaluating an Economic Advisor's Policy Proposal