The document discusses unemployment, its types, causes, and policies to address it. It defines unemployment and outlines the main types: frictional, structural, cyclical, seasonal, voluntary, and involuntary. The causes of unemployment include economic downturns, technological changes, shifts in demand, and government policies. Policies to reduce unemployment involve fiscal policy like infrastructure spending and monetary policy such as interest rate cuts. The document also defines the business cycle and its four stages: expansion, peak, contraction, and trough. Finally, it outlines different types of taxes governments use including direct taxes on income and wealth and indirect taxes like sales tax and excise tax.

1. UNEMPLOYMENT AND ITS TYPES,
CAUSES AND POLICES

2. Define Unemployment
• Unemployment refers to the state of being without a job despite
actively seeking employment. It is a measure of the percentage of the
labor force that is not currently employed.

3. Unemployment and its types
• Frictional Unemployment
• Structural Unemployment
• Cyclical Unemployment
• Seasonal Unemployment
• Voluntary unemployment
• Involuntary unemployment

4. Frictional Unemployment
• Short-term unemployment that occurs when people are between jobs
or looking for their first job.
Structural Unemployment
Structural Unemployment: Long-term unemployment caused by
changes in the structure of the economy, such as technological
advancements or shifts in consumer demand.

5. Cyclical Unemployment
Unemployment that occurs due to fluctuations in the business cycle,
such as a recession or economic downturn.
• Seasonal Unemployment
Unemployment that occurs due to changes in the demand for labor
during different seasons, such as agricultural workers or retail
employees during the holiday season.

6. Voluntary unemployment
Voluntary unemployment refers to a situation where an individual
chooses not to work, despite being able and willing to work. This could
be due to various reasons, such as personal preferences, pursuing
education or training, or taking care of family members.

7. Involuntary unemployment
Involuntary unemployment, on the other hand, refers to a situation
where individuals are willing and able to work but are unable to find
employment despite actively seeking it. This could be due to factors
such as a lack of job opportunities, economic downturns, or skills
mismatch. Involuntary unemployment can have negative consequences
on individuals, families, and the overall economy.

8. UNEMPLOYMENT AND ITS, CAUSES
There are several causes of unemployment, including:
1. Economic downturns and recessions: During periods of economic
recession or downturn, businesses may reduce their workforce or stop
hiring new employees, resulting in higher levels of unemployment.
2. Technological advancements: As technology advances, some jobs
may become automated, leading to a decline in the demand for human
labor in those industries.

9. • Changes in consumer demand: Changes in consumer preferences can lead to
a decline in demand for certain products or services, leading to job losses in
those industries.
• Structural shifts in the economy: Shifts in the economy due to changes in
industries, demographics, or consumer behavior can lead to a mismatch in
the skills of workers and the available jobs, resulting in unemployment.
• Government policies: Government policies such as high taxes, minimum
wage laws, or regulations can create disincentives for businesses to hire new
employees, leading to higher unemployment rates.

10. • There are several policies that governments can implement to reduce
unemployment, including:
• Fiscal Policy: The government can use fiscal policy to increase
government spending on infrastructure projects, education, or other
areas that create job opportunities.
• Monetary Policy: The government can use monetary policy to lower
interest rates, which can stimulate borrowing and investment by
businesses, leading to job creation.

11. UNEMPLOYMENT AND ITS POLICES
• Fiscal Policy: The government can use fiscal policy to increase
government spending on infrastructure projects, education, or other
areas that create job opportunities.
• Monetary Policy: The government can use monetary policy to lower
interest rates, which can stimulate borrowing and investment by
businesses, leading to job creation.

12. BUSINESS CYCLE AND ITS STAGES

13. Define business cycle
Business cycle refers to the natural fluctuation of economic activity in a
market economy over a period of time. It is characterized by alternating
periods of expansion (growth) and contraction (recession) in economic
activity, typically measured by changes in gross domestic product
(GDP) and employment rates. The four stages of a typical business
cycle include expansion, peak, contraction, and trough. Business cycles
can be affected by a wide range of factors, including changes in
consumer demand, government policies, international trade, and
technological advancements.

14. Business cycle and its stages
• Expansion: The expansion stage is characterized by increasing
economic activity, such as rising GDP, employment rates, and
consumer spending. During this stage, businesses are generally
optimistic about future growth prospects, and there is usually an
increase in investments, consumer borrowing, and lending.
• Peak: The peak stage is the point where the economy reaches its
maximum level of growth before beginning to slow down. At this
stage, employment and production levels are at their highest, and
inflation may start to rise. However, the growth rate begins to slow
down, and businesses become more cautious about investing.

15. • Contraction: The contraction stage is characterized by declining
economic activity, such as falling GDP, employment rates, and
consumer spending. During this stage, businesses become less
optimistic about future growth prospects, and investments and
borrowing decrease. This can lead to a decline in consumer confidence
and a decrease in consumer spending.
• Trough: The trough stage is the point where the economy reaches its
lowest level before starting to recover. At this stage, economic activity
is at its lowest, and businesses and consumers are cautious about
spending and investing. However, as the economy begins to recover,
there is potential for growth and expansion once again.

16. GDP, Real GDP, Nominal GDP
• Nominal GDP measures a country's economic output at current
market prices, without taking into account inflation. It represents the
total value of all goods and services produced in a country during a
given period of time, usually a year.
• Real GDP, on the other hand, measures a country's economic output
adjusted for inflation. It represents the value of all goods and services
produced in a country during a given period of time, but with the
effect of inflation removed. This allows for a more accurate
comparison of economic output across different time periods.

17. TAXES AND ITS TYPES

18. Define Taxes
Defination: Taxes are compulsory fees levied by governments on
individuals and businesses to generate revenue to finance public goods
and services such as roads, education, healthcare, and defense. Taxes are
the primary source of revenue for governments around the world.

19. Taxes and its types
• 1.Direct Taxes
• 2.Indirect Taxes
Direct taxes are taxes that are paid directly to the government by the
individuals or entities that are being taxed. These taxes are usually based
on the income or wealth of the taxpayer.
Indirect taxes, on the other hand, are taxes that are not paid directly by
the individuals or entities being taxed. . Examples of indirect taxes
include sales tax and excise tax.

20. • Income tax: A tax on the income earned by individuals and businesses.
It is typically a progressive tax, meaning that those with higher
incomes pay a higher percentage of their income in taxes.
•
• Sales tax: A tax on the sale of goods and services. It is typically a
regressive tax, meaning that it has a greater impact on lower-income
individuals since they spend a higher proportion of their income on
goods and services.
•
• Property tax: A tax on the value of real estate owned by individuals
and businesses. Property taxes are used to fund local services such as
schools, parks, and police departments.

21. • Excise taxes: That are usually collected at the point of production and
are typically passed on to the consumer as part of the product's price.
• Corporate tax: Corporate tax is a type of tax levied on the profits
earned by corporations, businesses, or companies.