Question:

When would there be periods of high unemployement?

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please explain :)

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  1. When demand for both consumption goods and investment (capital)goods falls due to lack of purchasing power and uncertain future demand, high unemployment occurs. This is the period of recession, rather deep recession and depression of the economic cycle. At the boom of expansion economic activity, the producers start producing more and more goods by employing more and more people in anticipation of continuing fast growth in demand: but their calculation goes wrong and they find that they have produced in excess. So they find large inventory/ stocks and therefore reduce their production and employment. With lower employment income falls. This results in fall in demand. Thus the excess supply situation may continue.leading to furthet fall in production and employment. Producers stop investments in new capacity expansion projects. The unemployment situation continue to worsen and become progressively higher and higher. Prices fall. And then at some point the producers who were driven by glloom find that they have under-estimated demand and therefore a situation of small excess demand has arisen. The they increse their production and employment and the period of recovert starts.


  2. its starting right now because you voted labor

  3. I believe you are asking for reasons for there to be high employment.

    That would include:

    1) increased costs to manufacture or produce, which cut into the profits of businesses, resulting in a high number of lay offs to try to upset that loss in profits.

    2) devaluation of currency such that more money is required to make purchases, which cut into the profits of businesses, resulting in a high number of lay offs to try to upset that loss in profits.

    3) the elimination of or criminalization of certain products or services, which compel closures of businesses.  Those individuals working for businesses closed in such a manner become unemployed.

    4) elimination of demand for a particular product or service that results in an industry no longer maintaining a certain level in profits, resulting in lay offs to try to upset that loss in profits.

    5) same applies to government resource allocation, except instead of talking about profits, talk about a lacking funding budget.  Bear in mind that there are many, many public sector jobs out there, including local, state, and federal governments and agencies, schools, and special districts.

  4. well the most was during the depression 50% and second during the carter years 15% now 5.5% it just happens sometimes

  5. Today.

  6. when a lot of people are out of work.

  7. During a declining economy, please see economic recession.

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