Author Question: Why does unemployment arise and what makes some unemployment unavoidable? What will be an ideal ... (Read 61 times)

CORALGRILL2014 · **on:** Jun 29, 2018

Why does unemployment arise and what makes some unemployment unavoidable?

What will be an ideal response?

Question 2

In order to reduce or eliminate a chronic shortage in the market for a currency under a fixed exchange rate system, we must devalue the currency.

Indicate whether the statement is true or false

cadimas · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

In a dynamic economy some unemployment is unavoidable. For instance, growth means that some workers will always be entering the labor force without a job and therefore be unemployed. Consumers changing their demand for one good over another means workers in the newly less-favored industry will lose their jobs and also be unemployed. Moreover some workers will always be leaving their current job to search for a better job and these workers, too, will be unemployed. So some unemployment is unavoidable as the economy churns and reacts to changes.

Answer to Question 2

FALSE