$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

ECO202-Four Types Of Unemployment

tag 1 Download5 Pages / 1,055 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT
  • Course Code: ECO202
  • University: ECPI University
  • Country: United States


1. Explain four types of unemployment
2. Explain why the aggregate demand curve slopes downward.
3. Suppose the Reserve Bank of Australia increases the interest rate. What happens to the supply and demand for Australian dollars? Does the dollar appreciate or depreciate? Explain with words and a diagram. 2
4. Explain the advantages and disadvantages of:
(a) A flexible exchange rate regime
(b) A fixed exchange rate regime


1.There are four types of unemployment, which are as follows:

Structural unemployment

The structural unemployment is the unemployment in which the technology is the reason to get the people unemployed in the economy. The use of the technology and machinery decrease the labor work. This updating is good as well as a curse for the economy as the labor get unemployed due to the use of the machinery in replacement of labor (Eriksson & Rooth, 2014).

Frictional Unemployment

The frictional unemployment can be defined as the unemployment in which the person who has recently completed their graduation and looking for a job. This type of unemployment has also been seen in the people who are between the jobs. 


Cyclical Unemployment

The cyclical unemployment is the unemployment, which occurs in the economy during the time of recession in the country. This type of unemployment is due to the cyclical change in the economy. This type of unemployment will remain in the economy until the demand and supply of the good and services will not be increased again (Eriksson & Rooth, 2014).

Seasonal unemployment

The seasonal unemployment can be defined as the unemployment in which the people remain unemployed for a certain season in the year. This type of unemployment is common in the daily wage workers who are working on the daily basis. For example, the construction workers are found unemployed during the winter season.

2.The aggregate demand curve slopes downwards due to following reasons, which are as follows:

The first reason to have downward sloping Ad curve is Pigou’s wealth effect (SparkNotes, 2018). This is due to the fixed nominal value of money is constant whereas the real value of money varies and depends on the price level in the economy. This provides the high purchasing power in the hands of the consumer due to the low price level in the economy.

The second reason for downward sloping aggregate demand is Keynes interest rate effect in the economy (SparkNotes, 2018). As per the below diagram, it can be said that the price and quantity demanded has an inverse relationship due to which the high price level indicates the low quantity demanded in the economy and vice versa. This is the reason consumer demand more currency when the price level is high in the country. Consumer keeps larger amount of currency in the bank. As the amount of currency in the bank increases, the supply will also rise. Ultimately, the bank has the large funds, banks can able to provide more loan s in the economy. As the supply of loan has been increased, the cost of the loan and their interest rates will also be decreased. This low interest rate depicts the saving by the consumers and thereby the aggregate demand in the economy increased.

The last reason to have the downward sloping aggregate demand curve is Mundell’s Fleming’s exchange rate effect (SparkNotes, 2018). If the price level on the economy falls, the interest rates also fall in the country. The decrease in the domestic currency as compared to the foreign currency interest rate is high; the consumer will invest in the foreign currency interest rate and will get the high return from there. The domestic currency moves to the foreign country and the real exchange rate will decrease and international supplies will increase. These will increase in the net export and ultimately the aggregate demand increases in the economy (Grohé & Uribe, 2013)


(Source: ThoughtCo, 2017)

3.If Reserve Bank of Australia increases the interest rate in the country, the demand for Australian dollar will be increased in the foreign market. Higher the interest rates will attract the foreign investment in the country. This will increase the revenues source in Australia.


(Source: ThoughtCo, 2017)

On the other hand, the supply of the Australian dollar will be decreased to make the interest rates high in the country. This effect of demand and supply of Australian dollars will appreciate the currency that is the Australian dollar in the foreign market.


(Source: ThoughtCo, 2017)

From the diagram, it can be analysed that the Australian currency will appreciates in the market due to the changes in the interest rates of the country by the reserve bank. Another reason due to which the Australian dollar increases in the foreign and domestic market is inflation in the country, which is caused due to the high, inters rate in the country.

4.Advantages of the flexible exchange rate regime are:

  • Making the independent monetary policy to have proper conduct in the domestic market
  • Work as the shock absorber created due to the downfall in the other countries
  • Enhance the economic development and encourage the employment in the country (Hodrick, 2014). 

Disadvantages of the flexible exchange rate regime are:

  • Unstable conditions in the economy with lots of uncertainties  which turn into the low volume of international trade and investment
  • Adverse effect on the economic situations and its structure due to the repercussions
  • Unnecessary movement in capital by using the speculative activities

Advantages of the fixed exchange rate regime are:

  • The absence of speculative activities as there is no revaluation and devaluation in the exchange rate
  • There will be a constraint on the government policy due to the macroeconomic policies in the country.
  • There will be certainty in the country as the trade and investment will be less risky (Hodrick, 2014). 

Disadvantages of the fixed exchange rate regime are:

  • The economy cannot able to respond to the sudden shocks as there is no mechanism to respond to the problem on of payment in other countries
  • Not compatible with the economic targets for growth, inflation and unemployment situations (Hodrick, 2014) 


Eriksson, S., & Rooth, D. O. (2014). Do employers use unemployment as a sorting criterion when hiring? Evidence from a field experiment. American Economic Review, 104(3), 1014-39.

Hodrick, R. (2014). The empirical evidence on the efficiency of forward and futures foreign exchange markets. Oxon: Routledge.

Schmitt-Grohé, S., & Uribe, M. (2013). Downward nominal wage rigidity and the case for temporary inflation in the eurozone. Journal of Economic Perspectives, 27(3), 193-212.

ThoughtCo. (2017). How Money Supply and Demand Determine Nominal Interest Rates [Online] Retrieved from:

SparkNotes. (2018). Aggregate demand Curve [Online] Retrieved from:

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Four Types Of Unemployment. Retrieved from

"Four Types Of Unemployment." My Assignment Help, 2019,

My Assignment Help (2019) Four Types Of Unemployment [Online]. Available from:
[Accessed 12 August 2020].

My Assignment Help. 'Four Types Of Unemployment' (My Assignment Help, 2019) <> accessed 12 August 2020.

My Assignment Help. Four Types Of Unemployment [Internet]. My Assignment Help. 2019 [cited 12 August 2020]. Available from:

Be it selecting Human Resource Research paper topics or drafting a human Resource Management Assignment or referencing HRM assignments, we do it all. We provide proper conclusion and reflective statements citing the means and methods one took to solve the problems.By Consistently linking the praragraphs and citing from famous works, we keep your assignments structured and updated. Place order for premium Human Resource Management assignment solutions with us.

Latest Economics Samples

ECON11026 Principles Of Economics 2

Download : 0 | Pages : 10

Answer: Introduction Macroeconomics is unit of economics which focuses on behavior and enactment of an economy. It is based on the aggregate fluctuations in the economy such as growth rate, unemployment and inflation. Most governments and organizations use macroeconomic simulations to enable them formulate economic strategies and guidelines. Australia has a very sturdy economy that has experienced many highs and lows in past years. It theref...

Read More arrow Tags: Australia 6 Principles of economics Other 

101753 Revaluing Indigenous Economics

Download : 0 | Pages : 10
  • Course Code: 101753
  • University: Western Sydney University
  • Country: Australia

Answer: Introduction The indigenous business sector of Australia is considered to be one among the fastest developing and growing sector of the country. About 12000 to 16000 businesses of Australia are indigenous-owned. In 1991, there were only 4000 indigenous people who were involved in the business but with time, it broadened and strengthened. Between the years 2011 to 2016, the number of self-employed grew by 30% (Collins et al., 2016...

Read More arrow Tags: Australia Ryde 6 Indigenous Economics  Other 

MAE101 Economic Principles Assignment

Download : 0 | Pages : 5

Answer: Introduction: Taxes are the compulsory payment to government. Any direct or indirect tax impact the parties those are required to pay the tax and also the some burden of tax can be transferred to other groups (Case, Fair and Oster 2014). The impact of any imposed tax and distribution of the burden is termed as tax incidence. Effect of any proposed tax depend on demand, supply conditions and their respective elasticity. Therefore, imp...

Read More arrow

EEC 11 Fundamental Of Economics

Download : 0 | Pages : 9
  • Course Code: EEC 11
  • University: Asia Pacific International College
  • Country: Australia

Answer: Introduction: Free Trade Agreements (FTAs) refer the situation when two or more than two countries agree to trade with each other, without any trade restriction. The member countries minimise tariffs and import quotas to reduce trade barriers for promoting imports and exports. Hence, FTAs affect the terms of trade of those member countries significantly (Anderson and Yotov 2016). In this context, a brief overview of European Union can...

Read More arrow

6FBS1546 Issues In The Global Economy

Download : 0 | Pages : 8
  • Course Code: 6FBS1546
  • University: University Of Hertfordshire
  • Country: United Kingdom

Answer: Essay: Technology in the Globalised World Benefits all Developing Countries Introduction The international movement of knowledge and technical expertise has become a common agenda globally, thus leading to the advancement of the world economy since the early 1970s. Science is expanding, which also leads to increased commodity diversification in the world trade arena. Technological progress has made it easy globally to receive foreign...

Read More arrow Tags: Malaysia Kuala Lumpur 6 Global Economy 

Save Time & improve Grade

Just share Requriment and get customize Solution.

We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits




Overall Rating



Our Amazing Features


On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.


Plagiarism Free Work

Using reliable plagiarism detection software, only provide customized 100 percent original papers.


24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.


Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.


Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

134 Order Completed

95% Response Time

Thomas Nelson

MS in Information Systems Technology with Specialization in Database Administration

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1592 Order Completed

96% Response Time

Jane Sima

Ph.D in Psychology with Specialization in Industrial-Organizational Psychology

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

203 Order Completed

97% Response Time

Richard Alpert

PhD in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2632 Order Completed

100% Response Time

Albert Ambrosio

MSc in Nursing

London, United Kingdom

Hire Me

FREE Tools


Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.


Essay Typer

Get different kinds of essays typed in minutes with clicks.


GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.


Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.


Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability




Your Approx Earning

Live Review

Our Mission Client Satisfaction

Awesome work. Awesome response time. Very thorough & clear. Love the results I get with MAH!


User Id: 383727 - 31 Jul 2020


student rating student rating student rating student rating student rating

Work was done in a timely manner took it through grammarly checked for plagiarism very well satisfied


User Id: 463334 - 31 Jul 2020


student rating student rating student rating student rating student rating

Great work for the short notice given. Thank you for never disappointing and helping out.


User Id: 194216 - 31 Jul 2020


student rating student rating student rating student rating student rating

I received a full point on the assignment. Thank you for all the help with the assignment.


User Id: 411395 - 31 Jul 2020


student rating student rating student rating student rating student rating
callback request mobile
Have any Query?