Structural unemployment arises
When people find themselves temporarily between jobs in the labour market.
Due to a deficiency of aggregate demand
When inflation is accelerating
When labour released from declining industries does not have the skills required to fill or is not living in the location where there exciting job vacancies.
As inflation increases and becomes more volatile resulting in greater uncertainty.
The price system becomes less efficient as a coordinating mechanisms
Investment by firms is likely to increase
International competitiveness is likely to improve
Consumption by households is likely to increase.
The full costs of increased unemployment entail.
Loss of tax revenue for the authorities
Financial hardship experienced by the unemployed and their families
A range of potential social and political consequences
All of the above
Unemployment resulting from real wages being above their equilibrium level is called ______ unemployment.
Structural
Frictional
Disequilibrium
Natural
