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2 answers

First, you presume they are a problem.

The business cycle is the source of cyclical unemployment. The solution is communism.

Frictional unemployment is positive, such as people seeking work after graduating college.

Structural unemployment can be reduced by reducing subsidies, work protections and price supports as well as support laws to make it easier to fire people.

2006-11-19 03:37:12 · answer #1 · answered by OPM 7 · 0 0

for cyclical solution is fiscal policy, decrease taxation and increase gov spending, for structural if is regional use subsidies and tax beaks, if is sectoral the solution is retraining. for frictional could be job centres so people find job qiucker.

2006-11-19 06:44:52 · answer #2 · answered by Bunnybody 2 · 0 0

well the government can use fiscal policy to boost the economy with the tradeoff of inflation, but in the long run the unemployment rate will still return to its natural percentage. The main solution is really just to boost the ecomomic growth, get people to spend money, and increasing the multiplier effect; the quickest way to do that is with fiscal policy.

2006-11-19 03:40:14 · answer #3 · answered by duffman8904 2 · 0 0

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