Cyclical Unemployment

Topics: Unemployment, Business cycle, Great Depression Pages: 2 (436 words) Published: May 21, 2013
1.Identify the type of unemployment referred to in the BBC article and outline the main causes of this form of unemployment. (1) Cyclical Unemployment, ment to describe the unemployment associated with business cycles occuring in the economy. Cyclical unemployment occurs during recessions because, when demand for goods and services in an economy falls, some companies respond by cutting production and laying off workers rather than by reducing wages and prices. (2) Unemployed individuals are unable to earn money to meet financial obligations. Failure to pay mortgage payments or to pay rent may lead to homelessness through foreclosure or eviction. An economy with high unemployment is not using all of the resources, specifically labour, available to it. These unemployment benefits include unemployment insurance, unemployment compensation , welfare and subsidies to aid in retraining. Societies try a number of different measures to get as many people as possible into work, and various societies have experienced close to full employment for extended periods, particularly during the Post-World War II economic expansion . (3) 1991-1993 increase in unemployment since the Great Depression, 1993-2008 economic stability, the unemployment rate is also relatively stable,2008-2009 and, after a brief respite, the UK economy slipped back into recession following 1 Fiscal policy refers to the way in which a government, political party, or other organization handles its finances. To Increase the rate of investment: Fiscal policy aims at the promotion and acceleration of the rate of investment in the private and public sectors of the economy. (2) Equal Distribution of National income: Fiscal policy should add to nationwide profits and reallocate it in such a way that the great inequality of profits and riches are abridged in the financial system. Little wealthy position in riches and mistreatment their profits on obvious consumption and inventories, genuine land, gold ingots,...
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