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Put missing words in these question.And explain the last question like big paragraphs. Consequences of Unemployment 1 Point Some unemployment is beneficial Explain Larger pool
Put missing words in these question.And explain the last question like big paragraphs.
Consequences of Unemployment 1 Point Some unemployment is beneficial Explain Larger pool of available labour for businesses could push wages or stop them rising helping to reduce firms and hence reduce inflation. Thus some unemployment may help firms to remain/gain price competitiveness. If the unemployment is due to a lack of then this could help reduce demand-pull inflationary pressures - as the economy operates below It is important that economies are dynamic and labour is shed quickly from declining industries and flows quickly to growing sectors. Inevitably there is likely to be unemployment as labour moves from one industry to another. Some unemployment is also considered healthy as both labour and employers need time to search for the most appropriate jobs and employees. If searching was discouraged it would inevitably lead to a higher turnover of labour and lower productivity as workers leave to find better jobs or become disgruntled.Evaluation Areas to cover: Hysteresis (demand-deficient unemployment may become unemployment) reducing the productive capacity of the economy . May help the economy but doesn't help the unemployed: living standards, morale, health etc . If inflation is already low it may lead to as AD falls . Other factors can keep inflation low via supply-side policies - increasing productivity, innovationPoint Unemployment is harmful as it worsens the fiscal position of the economy Explain (9)Step by Step Solution
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