Economics Unemployment Questions
Involuntary unemployment refers to a situation where individuals are willing and able to work at the prevailing wage rate but are unable to find employment. It occurs when there is a mismatch between the number of available jobs and the number of individuals seeking employment. Involuntary unemployment can be caused by various factors such as economic downturns, technological advancements, changes in consumer preferences, or structural changes in the labor market. It is considered undesirable as it leads to wasted resources and reduced economic output.