Page 123 - Macroeconomics. book docx_Neat
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4. Seasonal Unemployment: Occurs in industries affected by seasonal changes.
5. Disguised Unemployment: Workers appear employed but contribute very little to
output.
Causes of Unemployment
- Slow economic growth
- Technological change
- Population growth
- Weak investment
- Economic recessions
- Mismatch between education and labor market needs
Effects of Unemployment on the Economy
- Loss of output and income
- Increase in poverty and inequality
- Reduction in government tax revenues
- Increase in social problems and instability
- Lower standard of living
Policies to Reduce Unemployment
- Expansionary fiscal policy (increasing government spending)
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