The terms seasonal, frictional, structural and cyclical unemployment
Economists split unemployment into four types based on its cause. Each type — seasonal, frictional, structural, and cyclical — needs a different policy response to fix it.
Real World
The collapse of the UK steel industry in the 1980s created mass structural unemployment in South Wales and Sheffield — workers' skills were industry-specific and could not be transferred to growing service-sector jobs.
Exam Focus
Match each unemployment type to its correct policy remedy — e.g. retraining for structural, demand stimulus for cyclical — to demonstrate evaluation.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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