Question

discuss the causes and consequences of unemployment​

Answer 1

Unemployment is caused by demand and supply side factors.

1 : On the demand side if the demand curve shifts inwards unemployment will rise.

2 : Supply side factors such as an excess of supply of workers also means unemployment will increase.

Areas of high unemployment and social deprivation may also experience higher crime levels, suicide rates and psychological problems. ... Loss of output to the economy - the unemployed could be producing goods and services and if they are not, then GDP is lower than it could be -this is the opportunity cost of unemployment.

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