Indholdsfortegnelse
Describe a government’s interventions to combat unemployment. Address the two major unemployment categories.

Describe three major causes of inflation and various methods a government may use to control inflation

Describe the economic cycle and summarize what a government can do to minimize the economy’s cyclical swings and promote economic growth

Money plays a major role in modern economies. Discuss the role of central banks in governments’ attempts to control economic cycles and enhance economic growth.

Optimer dit sprog - Læs vores guide og scor topkarakter

Uddrag
The two major unemployment categories are voluntary and involuntary 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 number 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.

Involuntary unemployment defines the number of persons who are willing to work for the stated market wage or just below, but are unemployed against their own wishes due to certain factors.

One of the factors could include ‘deficiency of aggregate demand’. It indicates the excess supply of labor which the wage rate has failed to remove.

In the small rise in the price of wage goods relative to the money wage, both the aggregate supply of labor willing to work for the market wage rate and the aggregate demand for it at that the wages would be greater than the existing volume of employment.