what is causing unemployment right now? Is it a lack of aggregate demand? lack of aggregate...

what is causing unemployment right now? Is it a lack of aggregate demand? lack of aggregate supply? both? What kind of unemployment are we experiencing, cyclical, structiural, or frictional unemployment?

typed answer please

Solutions

Expert Solution

Answer -

Cause of Unemployment right now

The principal cause of the unemployment right now is lack of aggregate demand as the labor is available in the market however due to the COVID-19 pandemic many businesses are affected in a negative way severely such as tourism, hospitality and aerospace are among many others. As the business is facing slowdown they are laying off people and has also freezer hiring which has resulted in unemployment in the society so through this analysis it can be said that the unemployment which is present right now is because of lack of aggregate demand for the labor.

Type of unemployment we are facing

The COVID-19 has resulted into a global recession and slow down and hence the type if unemployment which is present currently is cyclical unemployment. Cyclical unemployment is a type of unemployment in which the overall demand for services and goods is not able to support the full employments it happens during the economic recession or slow down.

Rahul Sunny answered 1 year ago

Next > < Previous

Related Solutions

What is the increase in unemployment above equilibrium unemployment caused by a fall in aggregate demand...

What is the increase in unemployment above equilibrium unemployment caused by a fall in aggregate demand associated with the business cycle?

What is the immediate effect when the money supply increases? aggregate demand shifts right aggregate demand...

What is the immediate effect when the money supply increases? aggregate demand shifts right aggregate demand shifts left aggregate supply shifts right aggregate supply shifts left

State and Local Governments and Aggregate Demand. The aggregate demand curve shifts to the right if...

State and Local Governments and Aggregate Demand. The aggregate demand curve shifts to the right if A. the money supply decreases B. the price level increases C. taxes increase D. state governments increase their spending

There are numerous challenges in healthcare. One of the biggest issues right now is lack of...

There are numerous challenges in healthcare. One of the biggest issues right now is lack of talented/qualified staff. For example, in the dental field, hygienists were fairly plentiful and assistants were in short supply. Now, hygienists are critically low - why? - COVID - hygienists are leaving the field because of the additional stress, they don't want to have to wear all of the Personal Protective Equipment required by the Board of Dentistry and the additional patient screening, etc. Some...

if the short run aggregate supply curve intersects the aggregate demand curve to the right of...

if the short run aggregate supply curve intersects the aggregate demand curve to the right of potential GDP wages will rise?

if the short run aggregate supply curve intersects the aggregate demand curve to the right of...

if the short run aggregate supply curve intersects the aggregate demand curve to the right of potential GDP wages will rise?

define unemployment, explain where it comes from (aggregate demand or aggregate supply shock?).

define unemployment, explain where it comes from (aggregate demand or aggregate supply shock?)

Indicate what happens, in the short run, to the aggregate demand curve (shift right or left),...

Indicate what happens, in the short run, to the aggregate demand curve (shift right or left), real GDP (increase or decrease), and the price level (increase or decrease) in each of the following cases: a) The interest rate rises, b) Wealth falls, c) The dollar depreciates relative to foreign currencies, d) Households expect lower prices in the future e) Business taxes rise.

Which of the following will cause the aggregate demand curve to shift to the right ?...

Which of the following will cause the aggregate demand curve to shift to the right ? a. A decrease in household wealth b. A decrease in the price level c. Consumer expectations of higher future income d. An increase in the interest rate Which of the following events would most likely caused the increase in aggregate demand a. An increase in interest rates b. An increase in household wealth c. A decrease in consumer confidence d. A decrease in the...

Subjects