What do we understand by the word ’voluntary unemployment’?
Voluntary Unemployment
Unemployment created when labour chooses not to work on the available jobs while anticipating better jobs to be forthcoming
Unemployment cannot be zero when the economy is at full employment or the NRU. Since zero unemployment is unachievable in a free labor market, Milton Friedman used the term natural rate of unemployment to describe the baseline rate of unemployment as some unemployment cannot be avoided. Types of unemployment present when the economy is at its natural rate of unemployment:
No comments:
Post a Comment