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Why must the cause of unemployment be identified before choosing a policy?
Different causes require different policies: demand-side measures suit cyclical unemployment, while supply-side measures suit frictional and structural unemployment.
Supply-side measures always work fastest: training and labour-market reform suit cyclical, frictional and structural unemployment equally.
All unemployment requires the same policy: increasing aggregate demand is suitable for cyclical, frictional and structural unemployment.
Unemployment is always voluntary: reducing benefits is suitable for cyclical, frictional and structural unemployment.
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9.3.7 policies to reduce unemployment and their effectiveness Flashcards
20 flashcards on CIE Intl A Level Economics 9.3.7 policies to reduce unemployment and their effectiveness: the key terms and definitions you need to recall.