Question

in your own words, what is unemployment and how does it relate to microeconomics ?

Answer 1

It can be mentioned that unemployment is nothing but the number of people actively looking for a job but not employed but still in the labor force. Though unemployment is a complex macroeconomic scenario, is its relation with microeconomics as well and particularly related with demand and supply of the product or service. when you see the demand for the product is very less or decreased what happens is that less supply is required to get that reduced demand result of which people will be unemployed more because only less number of workers are required as a result of which I can understand in the micro economic conditions on the demand reduces the unemployment increase and vice versa.

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