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cyclical unemployment occurs when the economy is in the boom and bust, or business cycle found by Keynes. Structural unemployment on the other hand is classical.It is in a long term.
Also, cyclical unemployment results from weak demand which is amenable to expansionary government spending or monetary policy. structural unemployment is harder to fix. Structural joblessness results from things like skills mismatches, and policy to address such mismatches is inherently longer-term in scope.
4. .Businesses cannot create a new job, but the government.It can use fiscal and monetary policy to create jobs with fake account. Since they not need to pay back the debts like household.
Thank you!!!!!! Last one-- Bonus question: For the 2007-09 recession (The Great Recession) did most of the job losses represent cyclical or structural unemployment? Why?
since, The housing market boomed throughout the first half of the 2000s as home prices soared and construction activity rose to record levels. So this was cyclical . Means not pure evenly cyclical but mostly CYCLICAL :) @Destinyyyy
hope it helps
It does thank you
yeah pleasure... :D See, unemployment increases coming from changes in the composition of labor demand that are unmatched by corresponding changes in labor supply might be considered structural sometimes
I searched this article. Go through it. It might help you if u wanna understand it in detail http://www.frbsf.org/economic-research/files/wp12-25bk.pdf