when is contractionary policy used? *\nwhen there is inflation\nwhen there is unemployment\nduring a…

when is contractionary policy used? *\nwhen there is inflation\nwhen there is unemployment\nduring a contractionary phase\n\nstructural unemployment is characterized by which of the following? *\nfactors that discourage active job - seeking\nslowdowns in hiring due to economic contraction\ntransitions caused by movement to new industries\ngaps between desired and available skills in the job market

when is contractionary policy used? *\nwhen there is inflation\nwhen there is unemployment\nduring a contractionary phase\n\nstructural unemployment is characterized by which of the following? *\nfactors that discourage active job - seeking\nslowdowns in hiring due to economic contraction\ntransitions caused by movement to new industries\ngaps between desired and available skills in the job market

Answer

Brief Explanations:

Contractionary policy aims to reduce aggregate demand, often used when inflation is high to cool down the economy. Structural unemployment occurs due to a mismatch between the skills workers have and the skills employers need in the job - market.

Answer:

  1. when there is inflation
  2. gaps between desired and available skills in the job market