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ECONOMICS. Standard Level – Second Year. UWC in Mostar Academic year 2007 / 2008. Azra Bajramović. MACROECONOMICS Measures to deal with Unemployment. Search (frictional) unemployment can be reduced by: Reducing unemployment benefits.
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ECONOMICS Standard Level – Second Year UWC in Mostar Academic year 2007 / 2008 Azra Bajramović
MACROECONOMICS Measures to deal with Unemployment • Search (frictional) unemployment can be reduced by: • Reducing unemployment benefits. • Creating employment agencies to reduce the search time. • Study-work programs
MACROECONOMICS Measures to deal with Unemployment • Structural unemployment can be reduced through retraining and relocation: • Older workers resist changes and are reluctant to admit that innovations have destroyed the value of the knowledge and experience that they already have. • Employers tend to hire younger workers who will learn the new skill faster.
MACROECONOMICS Measures to deal with Unemployment Cyclical unemployment can be reduced with appropriate fiscal and monetary policy.
MACROECONOMICS Measures to deal with Unemployment • QUESTIONS FOR DISCUSSION: • What types of measures were used in countries you have researched? • Were those measures successful or not? Why? • What would you suggest?