Places Locate: the Netherlands, Spain, Portugal, Russia, Austria-Hungary.
Principles: Macroeconomics (ECON 102) Three types of Unemployment Frictional unemployment Unavoidable, usually shortterm unemployment that inevitably arises due to imperfect knowledge that workers have about where they will find their net job Structural unemployment Caused mainly (but not entirely) by mismatches between skills that workers have and the skills that employers are seeking, even at the peak of the business cycle o Also caused by labor unions, efficiency wages, side effects of government policies, and minimum wage laws Cyclical unemployment Caused by a downturn in the economy. Over and above unemployment that would exist if unemployment were at its “natural” rate o Note: if there is no
