Questions 1:
Describe voluntary and involuntary unemployment and describe which of the two available government policies can be applied to cure which unemployment situation.

Questions 2:
A. Describe “full-employment unemployment”.

Voluntary unemployment defines the number of persons in an economy who voluntarily choose not to work because they’re either rejecting a position due to lower wage rates or they are satisfied with the number of benefits they receive from the government.

The person is mentally and physically able to work but simply chooses not to – unemployed of their own will.

An example of a voluntary unemployed could be someone continuously looking for a job more suited for the person’s skills/qualifications.

There might not be any jobs available during a certain period, or the person has unrealistic expectations of what job they’ll be able to find fitting their skills, etc.

Another example of a voluntary unemployed is the person receiving a generous amount of social benefits, which makes them lose motivation for joining the labor force.

If the unemployment benefits are relatively high and easy to claim, it becomes less attractive for several people to find jobs, since they’re then being paid well for not working.