In fact, different types of unemployment are caused by many different factors, with some of them even caused by more than one factor. Let’s take a look in details.
Despite the government trying to keep unemployment low, unemployment exists when people who are willing and able to work cannot find a job. Being jobless provides no money. Specifically, there are seven different types of unemployment:
Another important government economic objective is to keep low unemployment in the country. In this way, the government can maintain and improve the country’s economic status.
With the demand for necessities and luxury products falling during economic recession, it is important for managers to consider ways to reduce business costs. The overall cost reductions during a period of economic recession will help businesses to maintain profit margins.
There are many ways in which businesses can lower Total Costs (TC). Here are a few the most obvious ways to reduce business costs.
An economic recession has serious consequences for most businesses and the whole economy.
How can your business cope with economic recession?
What leads to economic recession?
Is economic recession always bad? Not really!
Who benefits during economic recession?
Strategies to cope with economic recession
Different producers should adopt a different business strategy during economic growth, and a different business strategy during economic recession.
The country’s economy usually does not grow at the steady and constant rate, let’s say 5% annually. Instead, economies tend to grow at very, very different rates over time which leads to The Business Cycle.
The Business Cycle is the periodic growth and decline of a country’s economy. It is illustrated as regular swings in economic activity that occur in most economies. It shows changes in the level of activity in the economy expressed as short-term fluctuations.
Economic activity in the country is measured by Gross Domestic Product (GDP). The Business Cycle is usually measured by real Gross Domestic Product (GDP) that is adjusted for inflation.
All economies go through the Business Cycle which has five main stages. Each stage can last between a few months and several years or even decades.
Positive economic growth
Why is economic growth important to a country?
What factors lead to economic growth?
The effects of economic growth on businesses
Negative economic growth
What would happen to the country without economic growth?
Understanding these six economic objectives and the following three economic policies to achieve them is very important to managers who need to make decisions for their businesses to take the advantage of positive policy changes.
This first section introduction to economics includes government influences on economic, environmental, legal and ethical issues and how they impact different business functions.
Business managers need to focus on different external influences on business activity when making business decisions. They need to carefully analyze how these governmental, social, environmental and international factors impact on a single business organization shaping the business and its decision-making.