Chapter 15, Question 14
National income and output are used in economic studies to estimate the value of goods and services produced in an economy a snapshot of a country’s economic activity. A system of national account is employed to account for and record economic changes. National income is calculated using a variety of different methods. Some of the more popular methods include GDP (Gross Domestic Product), GNP (Gross National Product), NNP (Net National Product), NNI (Net National Income) PI (Personal Income) and PDI (Personal Disposable Income), among many others.
National income statistics provide us with a numerical comparison of one country’s economic situation with another country’s economic situation. Easily economic…show more content…
Each impacts the economy and its citizens in different ways. Each respective type of unemployment is examined and further explored below.
“Unemployment caused by changes in the structure of consumer demands or technology” is considered structural unemployment. “It means that demand for some products declines and the skills of this industry’s workers often become obsolete as well. This results in an extended bout of unemployment while new skills are developed.
Structural unemployment is often referred to as the most devastating type of unemployment. This devastation is the result of a shift in need for a particular product or service. For example, when typewriters were replaced with more functional personal computers in both the home and in the office, the whole industry changed. The manufacturers no longer needed employees to produce the product, and of course those that were typists working in the industry had a new skill to learn, word processing on more sophisticated devices. These individuals provided a skill that was no longer needed. Those individuals‟ having to learn these new desired skills takes time. Essentially there is a “mismatch” between the skills desired by employers and the available skill sets of workers.]Government programs to reduce structural unemployment may involve reimbursements or reduced tuition for employees seeking additional