Three Types of Unemployment - Assignment Example

he LM curve on the other hand depict a policy measure by which an economy can reduce the level of unemployment, an increase in money supply will result into a downward shift in the LM curve, as a result the economy will be at a higher output level and therefore higher employment levels, the diagram below shows a the effect of an increase in money supply on the LM curve and... This paper analysis the LM and IS curve model in determining how unemployment in the economy can be reduced, there are two types of policies that an economy can apply to fine tune the economy to achieve required economic growth and employment levels....

Common types of unemployment are as follows:1.... Common types of unemployment are as follows:1.... The prevalence of unemployment in any country is measured using the unemployment rate.... According to the economist Edmond Malinvaud, the type of unemployment that prevails at a particular time depends on the situation at the goods market.... If the goods market is a buyers' market in which sales are restricted by demand then Keynesian type of unemployment prevails, while if a production capacity is limited classical unemployment prevails....

Now, before throwing some light on the importance of government in reducing the rate of unemployment, it is crucial to shed some light on the types and methods of measuring unemployment.... nbsp;   The definition of unemployment is quite varying.... The unemployment rate is the best way to measure the extent of unemployment in any country.... When there will be unemployment in a country people will not be in a position to deal with day-to-day expenses....

There are three main types of unemployment namely fictional, structural and cynical… al unemployment occurs when job seeker's skills are not in demand due to over specialization in a single field, geographical obsolescence, technological changes or structural change of the economy.... There are three main types of unemployment namely fictional, structural and cynical unemployment.... A growing economy typically has lower level of unemployment....

There are Three Types of Unemployment namely frictional, structural, and cyclical unemployment (Kennedy 37).... The unemployment rate determines the levels of unemployment in an economy (Kennedy 37).... Consequently, the unemployment levels have gradually reduced over the years.... However, there are minimal changes in the unemployment rate in the province since 2010.... On the other hand, unemployment is the number of individuals in an economy who are ready and capable to work, but cannot find a job....

Her type of unemployment is hard to define since she is only available for a period of time for a specific kind of work (Tucker 172).... Another problem with this type of unemployment is the fact that it can last for a long period of time simply because firms are not willing to retrain their workers as a result of cost or the time involved (Tucker 172).... The paper describes a number of causes and reasons why one person finds himself unemployed with structural unemployment, frictional unemployment and seasonal unemployment being the most common types....

An economy with a high rate of unemployment has increased rates of crime and social problems.... Both the occupational and geographical immobility of labor can also cause this type of unemployment.... In this type of unemployment, there is a reduction in the demands of goods and services, which reduces production, and the number of works needed to satisfy demand.... This type of unemployment exists in every economy because of the diversity of the skills of the workers as well as the work available....

The paper "Causes of Unemployment and the Economic Schools of Thought" discusses that it is good news that the voluntary aspect is present, though minimal, in most types of unemployment and as such it is possible to do something to avert unemployment in general.... hellip; It is very difficult to categorize types of unemployment as voluntary or otherwise without overlap.... This has turned out to be true based on the fact that we have found at least a voluntary aspect in each of the types of unemployment albeit most of the types are more involuntary than they are voluntary....