Diagram Of Unemployment. The diagram above illustrates the natural rate of unemployment it is the q2 q1 distance between s and lf at wage w1. Using a diagram to show the best response function and the wage setting curve.
These population estimates and projections come from the latest revision of the un world urbanization prospects. Structural unemployment results from inability of labor market to arrive at the market clearing wage at which the number of workers are just equal to the number. The diagram above illustrates the production possibilities for the us.
Classical caused by intervention in the labour market that raises the wage above the market equilibrium eg.
Classical caused by intervention in the labour market that raises the wage above the market equilibrium eg. Focus on the main causes of unemployment unemployment has a number of causes government policies towards unemp loyment are likely to be more. The natural rate of unemployment is the difference between those who would like a job at the current wage rate and those who are willing and able to take a job. Relatively low cyclical unemployment for an economy occurs when the level of output is close to potential gdp as at the equilibrium point.