d) Types of unemployment

d) the causes of unemployment: structural unemployment, frictional unemployment, seasonal unemployment, demand deficiency and cyclical unemployment, real wage inflexibility

structural unemployment = unemployment due to a lack of in demand skills

• growth of certain industries + relocation of production

cyclical unemployment = unemployment due to a decrease in demand for labour, due to a decrease in AD

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seasonal unemployment = unemployment due to a lack of need of certain labour during certain seasons

• agriculture + tourism

frictional unemployment = unemployment due to workers voluntarily leaving their jobs in search for another

real wage unemployment = unemployment due to the real wage being higher than the equilibrium wage

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