Question

List the three types of unemployment and explain what causes each type.

Answer 1

Solution -

Three Type of Unemployment

1 Natural Unemployment

2 Frictional Unemployment

3 Strutural Unemployment

Cuases of above Unemployment respectively,

1 Natural Unemployment occursReccesion in market and unexpected happen Economic Bubble

2 when any employee left old job and searching for new one at that time Frictional Unemployment occurs

3 Strutural Unemployment occurs becuase of the required skilled of worker and actual skill dosent match at that time Strutural Unemployment occurs.