Question

What will be the impact of under full employment equilibrium of involuntary unemployment?​

Answer 1

Answer:

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Explanation:

Involuntary unemployment is a situation where workers are willing to work at the market wage or just below but are prevented by factors beyond their control. These factors could include deficiency of aggregate demand, labour market inflexibilities, implicit wage bargaining and efficiency wage theory

Underemployment equilibrium describes a state in an economy where underemployment is persistently higher than usual. In turn, the unemployment rate will be greater than the NAIRU rate of unemployment, often due to economic weakness