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.
Aggregate demand is the total demand for all goods and services in an economy from.
The household and government sectors
The household sector
All sectors of the economy including the rest of the world
All sectors except the rest of the world
The percentage of the labour force that is unemployed is the
Labour force rate
Unemployment rate
Employment rate
Unemployment population ratio
The greater the marginal propensity to import
The smaller the spending multiplier
The greater the spending multiplier
The greater net exports
The greater demand
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 labour force can be defined as
Those who could claim benefit if they were to become unemployed.
The population between school leaving age and retirement age
Anyone who is working or actively seeking work
Those of working age who are seeking work and are available to for work at current wage rate.
Cyclical unemployment is the
Portion of unemployment that is due to changes in the structure of the economy that results in a significant loss of jobs in certain industries.
Unemployment that occurs during rescession and depressions
Portion of unemployment that is due to the normal working of the labour market
Unemployment that results when people becomes discouraged about their chances of finding a job so they stop looking for work
When outflows to the unemployment pool are greater than inflows, the level of unemployment will
Rise
Fall
Remains unchanged
Rise initially and then fall
If the economy is operating at its full capacity or potential GDP following a decline in business confidence.
Investment is likely to fall and unemployment is likely to increase
Investment and employment are likely to remain unchanged
Firms are likely to increase then investment in new plant and machinery.
All the above
Which of the following is true about a period of inflation?
Prices of all goods stay the same or are rising
All prices are rising
The average price level is rising
All of the above
