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$1.00 DQ 2 week5 xeco class for particapation points
- From Business: General-Business
- Closed, but you can still post tutorials
- Due on Jun. 08, 2009
- Asked on Jun 05, 2009 at 1:02:21PM
Q:I need help on DQ 2 week 5 xeco class. For particapation points.
I need feedback on this students DQ 2 response below.
Inflation is a sustained increase in the average price of all goods and services produced in an economy. Money loses purchasing power during inflationary periods since each unit of currency buys progressively fewer goods. The higher interest rates tend to lead to lower inflation; and lower interest rates tend to lead to higher inflation. There are several types of unemplyment:
1. Frictional Unemployment:
ยท This is unemployment caused by people moving in between jobs, e.g. graduates or people changing jobs. There will always be some frictional unemployment.
2. Structural Unemployment
This occurs due to a mismatch of skills in the labor market.
3. Classical or Real Wage Unemployment:
This occurs when wages in a competitive labour market are pushed above the equilibrium.
4. Demand Deficient or Cyclical Unemployment
This occurs when the economy is below full capacity. E.g. in a recession when AD falls there will be a fall in output, therefore firms will employ less workers because they are producing less goods.
5. Seasonal Unemployment
Unemployment tends to be higher during certain times of the year, either in summer or winter depending on the country.
Demand deficient unemployment has the largest impact on the economy.
