Guest Posted May 24, 2015 Report Share Posted May 24, 2015 (edited) Explain using a diagram, that structural unemployment is caused by labour market rigidities. It is from the econ syllabus. I really don't know how to answer it. I mean the labour market rigidities prevent the force of supply and demand from operating in the labour market, but why is it structural unemployment ? why is there a mismatch between labour demand and labour supply? And which diagram should I use? the real wage unemployment diagram? Thank you. I asked this question before but I still don't get it... Edited May 24, 2015 by Guest Reply Link to post Share on other sites More sharing options...
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