The nature of unemployment

people temporarily laid off: seasonal employment for example) hotels: they would hire seasonal employees in order to cut the costs transfer payment:
1. In the United States, a payment made to individuals by the federal government through various social benefit programs. 2. In Canada, a payment made to the provinces and territories by the federal government.

this is the relation between two graphs when there is really low demand for the wages then it is called demand-deficient unemployment This occurs when there is insufficient demand in the economy to maintain full employment. If demand falls, firms sell less and so reduce production. If they are producing less, this leads to lower demand for workers. Either workers are fired or a firm cuts back on employing new workers. In the worst case scenarios the fall in demand may be so great a firm goes bankrupt and everyone is made redundant (e.g. Woolworths, Borders e.t.c) Demand deficient unemployment is associated with the theory of J.M.Keynes who developed his General Theory of Money against a backdrop of the Great Depression.

technological unemployment when the firm is capital intensive unemployment primarily caused by technological change

policies to tackle unemployment (in order to reduce unemployment) demand-side policies supply-side policies this is kind of a long-term plan 1. Better job information to help reduce frictional unemployment. 2. Training for unemployed to help present better CVs and give themselves confidence in job interviews. 3. Lower unemployment benefits to increase the incentive to get a job. It is argued generous unemployment benefits create an unemployment trap, where those on benefits would get only a small increase in after tax income if they decided to work. 4. Reduced Power of Trades Unions. Trades unions can cause real wage / classical unemployment (where wages are pushed above the equilibrium. If you reduce the power of unions, wages will fall to equilibrium levels leading to less unemployment. Also reducing minimum wages should have similar effect. However, this could leave workers without protection against monopsonist employers leading to lower wages. 5. Increased labour market flexibility. e.g. make it easier to hire and fire workers; this should encourage firms to set up and hire workers in the first place. However, this may make workers more fearful of losing their jobs. It may also lead to shorter term contracts and increase inequality. 6. Better education and training. This provides skills which will help the long-term unemployed to retrain and find jobs in a fast changing labour market. This can help reduce structural unemployment. However, it depends whether the government can provide skills that employers really need; there is no guarantee that government spending will be able to solve the skills gap. 7. Employment subsidies. The government could give firms subsidies for taking on long term unemployed. This could give the long term unemployed a new chance. However, it will be costly and there is a danger firms could make current workers redundant to benefit from the employment subsidies.

government trial of making the money supply even value of currency: falls

inflation and unemployment

first, to know, inflation and unemployment has an inverse relationship inflation is a general increase in prices and fall in the purchasing value of money.
hyperinflation: extremely high level of inflation

The costs of inflation since the price increases, we start buying more goods from other countries redistribution: your purchasing power goes down: for example if I need to pay rent, I need to pay more and more in order to stay in balance of payments uncertainty resources used to cope with inflation

Philips curve
what is stagflation?
A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, or inflation.