Question

please answer all in microsoft word

a.Define, discuss, and provide real world examples of how the 3 main categories of unemployment affect individual households, individual firms, and the entire economy.

b.Explain and discuss the significance of the natural rate of unemployment, also known as the full-employment unemployment rate.

Answer 1

unemployment is a situation where people are willing to work existing rate but unable find the job.The following the types of unemployment prevails in the economy.

The seasonal unemplyment: labors get jobs for a specific period and remaining they are an unemployed example, agricultural workers, fishers etc. this type unemployment affects the household because their income is reduced.

The cyclical unemployment: it occurs due to cyclical fluctuation during the recession in the economy the employer need to lay off employees.

The natural rate of unemployment: is a situation where people leave the existing job and search for the new job and people searching for their job which matches their skill.

The full employment is the situation where all the resources and laborers are employed.The unemployment is a great problem for the economy, household, business classes because of an economic resource are unemployed, household income reduced and business classes loss of the labors.