Compendium admissions 2023-25
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| Unemployment Unemployment refers to a scenario in which a person actively seeks a job but cannot find it. Unemployment is seen as an essential indicator of economic health. The unemployment rate is the most often used metric of unemployment. It is derived by dividing the number of jobless persons by the labour force participation rate. Types of Unemployment Frictional Unemployment This form of unemployment is generally temporary. It is also the least difficult in terms of economics. It happens when individuals shift employment willingly. It takes time to locate another work after leaving a firm. Similarly, graduates just starting to hunt for job contribute to frictional unemployment. 36 Cyclical Unemployment Cyclical unemployment refers to the volatility in the number of jobless employees that occurs during economic ups and downs, such as those caused by variations in oil prices. Unemployment rises during recessions and falls during times of economic expansion. Structural Unemployment: Structural unemployment is caused by a technical shift in the economy's structure in which labour markets work. Workers moving from jobs that are no longer needed may become unemployed due to technological advances. Institutional Unemployment Long-term or permanent institutional conditions and incentives in the economy cause institutional unemployment. Fiscal Policy In India, fiscal policy is the guiding force that assists the government in determining how much money it should spend to promote economic activity and how much income it must receive from the system to keep the economy functioning correctly. In recent years, the role of fiscal policy in achieving rapid economic growth has grown, both in India and worldwide. One of the primary objectives of the Government of India's budgetary strategy is to achieve rapid economic growth. Fiscal policy, like monetary policy, controls a country's economy. The government of a country manages the flow of tax income and public expenditure to guide the economy through fiscal policy. If the government collects more money than it spends, it operates in a surplus if it pays more than it receives in tax and non-tax revenues, it works in a deficit. The government must borrow either locally or from abroad to cover increased expenses. Alternatively, the government might draw on its foreign exchange reserves or create more money. The goal is to help make more productive capital accessible to the people, free up some income for consumers to spend elsewhere, and encourage businesses to invest. At the same time, the government may tax firms and individuals less, receiving less money. Download 4.08 Mb. Share with your friends:
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