ECO10004 Lecture Notes - Lecture 9: Deflation, Business Cycle, Aggregate Supply
Document Summary
Structural unemployment: caused by aggregate supply side factors such as a mismatch of skills as a result of new technology, as well as business reallocation and closure. Frictional unemployment: exists when people are unemployed between finishing one job and starting another (short-term unemployment: can be common for those in the construction industry whose employment may be disjointed as it is project based. Hard-core unemployment: often the result of personal disabilities and attitudes that are seen by some as hostile to effective employment e. g. personal appearance, criminal record, physical disability: those subjected to hcu can sometimes be deemed unemployable. Inflation: refers to the sustained increase in the general or average prices paid for a range of goods and services over time. Erodes purchasing power and real incomes: quantity of goods and services incomes will buy after allowing for effects of inflation.
