Question

Explain and list the types of unemployment.

Explain and list the types of inflation.

Thank you.

Answer 1

There are mainly 3 types of unemployment in the economy. they are structural, cyclical and frictional unemployment.

In Structural unemployment there is a difference between perceived value and skills of an individual against the needed skills set by an employer to succeed in the job..

Cyclical unemployment occurred related to the health of the economy over time. In recession period many job lost whereas in Growth period employers hire more employees.

Frictional unemployment occured when an employee looking for a new job or in between jobs. Here there is a period out of work for an employee..

There are mainly 3 types of inflation. they are demand pull, cost push and built-in inflation..

In demand pull inflation overall demand for goods or services increases faster than the production capacity of the economy.

In cost push inflation the inflation occurred because of rise in cost of production. As the price of input increases the cost of production is rises so the producers charges more price..

In built-in inflation there is a expectation of future inflation and workers will demand more wages to maintain their livelihood and thus the production cost increases and the prices are also increased...

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