What Are the Three Types of Unemployment and How Do

question 2

Essay

What are the three types of unemployment and how do they change over the business cycle?

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices over a specific time period.

Indifference Principle

If an asset is mobile, then in long-run equilibrium, the asset will be indifferent about where it is used; that is, it will make the same profit no matter where it goes.

Garbage Collector

An individual or entity responsible for collecting and disposing of waste material from public or designated areas.

Relatively Higher

A comparative term indicating that one variable or item is of greater magnitude or intensity compared to another or the general context.