How might government policies differ when attempting to reduce the three types of unemployment? Be specific
What will be an ideal response?
If the government is attempting to reduce frictional unemployment, it would need to devise a way to do a better and faster job of matching workers and jobs.
If the government is attempting to reduce structural unemployment, it would need to address the underlying structural problem, such as setting up job training programs for the structurally unemployed.
If the government is attempting to address cyclical unemployment, it would need to find a way to get people to accelerate their own spending or find some way to replace the lost spending, such as increasing government spending.
You might also like to view...
Answer the following statements true (T) or false (F)
1. The Keynesian analysis assumes that ample resources will be available to increase production if planned investment increases when the economy is at less than full employment. 2. The Keynesian analysis differs from classical analysis in its short-run analysis of the economy. 3. The monetarist school is primarily concerned with unemployment and recessions. 4. The monetarist school is more similar to the Keynesian school than the classical school. 5. The time lags lead monetarists to contend that monetary policy is counterproductive. 6. The new classical school holds that rational expectations tend to defeat the goals of monetary policy. 7. The new classical school contends that government fiscal policy is better than monetary policy in controlling inflation.
The principle of increasing marginal opportunity cost holds in which of the following cases?
A. The production possibility curve is a downward-sloping straight line. B. Some inputs are better for producing particular goods. C. Each input can be used to produce only one good. D. All inputs are equally useful in the production of all goods.
When E increases by 5%, we know that
A) a real appreciation will occur if P decreases by 5%. B) a real depreciation will occur if P also increases by 5%. C) a nominal appreciation will occur. D) a nominal depreciation will occur.
Institutions and laws, such as patent protection, that foster innovations lead to economic growth because they
A) give businesses loans to buy new machinery. B) give confidence to consumers that the products they buy are safe. C) allow the government control of the innovations. D) give confidence to inventors that they will profit from their innovation.