6. What are the 3 things to do to reduce unemployment?
Budget surplus, raise interest rates, policies to increase output
Budget deficit, reduce interest rates, policies to decrease output
Budget deficit, reduce interest rates, policies to increase output
Budget surplus, reduce interest rates, policies to increase output
7. Which of these is a cost to economic growth?
Inflation
Reduction in poverty
Rise in employment
Rise in welfare of population
8. What causes structural unemployment?
Long term unemployment, industry declining.
Workers moving between jobs
People choosing not to work
Fall in total demand in the economy.
9. What is the unemployment called when capital takes over labour?
Seasonal
Frictional
Cyclical
Technological
Voluntary
10. What is the wage price spiral?
As prices rise, workers and trade unions push for higher wages pushing costs up and leading to further inflation
As prices rise, workers stay with smaller wages to stop inflation rising further so they just have less money like nice people :)
11. What are the following costs of; menu costs, unemployment, shoe leather costs, labour market problems, income redistribution probles, balance of payments problems, danger of hyperinflation.
