Question

What is disguised unemployment?​

Answer 1

Disguised unemployment is unemployment that does not affect aggregate economic output. It occurs when productivity is low and too many workers are filling too few jobs. It can refer to any part of the population that is not employed at full capacity.

Answer 2

Answer:

Disguised unemployment occurs when part of the labour force is either left without jobs or operates redundantly, such as the productivity of the workforce is effectively zero. It is unemployment which has no impact on aggregate production. An economy shows hidden unemployment when productivity is poor, and too many workers also occupy few jobs.

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