Question

In: Economics

Which of the following would exist even if the wage is held at the competitive equilibrium?...

  1. Which of the following would exist even if the wage is held at the competitive equilibrium?
    1. Structural unemployment
    2. Cyclical Unemployment
    3. Frictional Unemployment
    4. None of the above

Solutions

Expert Solution

Answer: Structural unemployment

Explanation:

Structural unemployment happens in any event, during times of solid financial development. It emerges when a basic decrease happens in specific ventures, which are not, at this point equipped for contending in their business sectors. They are confronting a mix of evolving requests, new items, and new strategies of creation and new increasingly productive contenders from abroad markets. This expansion in universal rivalry, or globalization, has implied that many created economies have endured basic joblessness. It is the aftereffect of increasingly capital concentrated procedures of creation being utilized inside an economy.

Be that as it may, it is workable for there to be joblessness at the equilibrium wage also. Despite the fact that the interest for work may coordinate the flexibly of work in balance, there may in any case be individuals who are jobless. This might be on the grounds that they are stuck in a joblessness trap where they are acquiring more on benefits than they could in work, or it might be on the grounds that the business they were working for has been contracting and their aptitudes are not required any more and are of no utilization in different territories.

Rahul Sunny answered 1 year ago
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