Why is structural, frictional and seasonal unemployment supply side related?

Watch
dont know it
Badges: 9
Rep:
?
#1
Report Thread starter 3 years ago
#1
Is structural not caused by one industry declining meaning demand isn't enough in that industry, hence it's demand related? Also, if seasonal relates to different goods being demanded during different seasons, how is that also related to supply?
0
reply
Zystra
Badges: 14
Rep:
?
#2
Report 3 years ago
#2
Labour is a factor of production. The more Labour 'input' into a product the higher supply. If Labour's quantity increases through lets say immigration, LRAS will shift to the right. If the price of labour increases, SRAS will shift left.

If there is a lower demand of Labour lets say because of seasonal unemployment that will shift the demand curve of the Labour market diagram to the left. This will decrease wages and amount of people employed which will shift SRAS and potentially LRAS as it also affects the amount of Labour supplied in an economy. Supply will shift but demand will contract as there will be higher prices which is why its supply side.
1
reply
X

Quick Reply

Attached files
Write a reply...
Reply
new posts
Back
to top
Latest
My Feed

See more of what you like on
The Student Room

You can personalise what you see on TSR. Tell us a little about yourself to get started.

Personalise

Do you have the space and resources you need to succeed in home learning?

Yes I have everything I need (408)
56.12%
I don't have everything I need (319)
43.88%

Watched Threads

View All
Latest
My Feed