business cycles and unemployment

What is the definition of unemployment? What problems are there in measuring unemployment?

Unemployment is the situation where individuals who are capable of working are unable to find a job. Measuring unemployment can be problematic due to factors like underemployment, discouraged workers who have stopped looking for jobs, and variations in definitions of what constitutes unemployment.

What are the costs of unemployment? Are there costs of full employment?

The costs of unemployment include loss of income for individuals, decreased economic output, and increased government expenses on social welfare programs. Full employment can lead to inflationary pressures as demand for labor rises, potentially causing wage increases.

What options does the government have for combatting unemployment?

The government can implement measures such as fiscal stimulus, monetary policy adjustments, job training programs, and social welfare initiatives to combat unemployment, aiming to boost economic demand and support job creation.

What policies are used to moderate business cycles?

Policies used to moderate business cycles include monetary policies like interest rate adjustments and fiscal policies such as changes in government spending and taxation. These measures aim to smooth out fluctuations in economic activity.