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Cyclical and structural unemployment can arise due to declines in aggregate demand and changes in the structure of the economy. This reduces output, economic growth and living standards while also deteriorating the budget position through lower tax receipts and higher welfare spending. Policies like fiscal policy stimulus and monetary policy easing can boost aggregate demand and create jobs to reduce cyclical unemployment. Labor market programs help address structural unemployment by improving skills and in

Author

Eren Sevince

Language

EN