Post Covid-19 unemployment was A. Supply side unemployment B. Demand side Unemployment C. Inflation side Unemployment D. Deflation side Unemployment
Question
Post Covid-19 unemployment was
A. Supply side unemployment
B. Demand side Unemployment
C. Inflation side Unemployment
D. Deflation side Unemployment
Solution
The unemployment caused by the Covid-19 pandemic can be classified as B. Demand side Unemployment.
Here's why:
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The pandemic led to lockdowns and restrictions around the world, causing many businesses to close or reduce their operations.
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This resulted in a decrease in demand for various goods and services, as people were either not allowed or not willing to go out and spend money.
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As a result, businesses had to lay off employees due to the lack of demand, leading to an increase in unemployment.
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This type of unemployment, caused by a lack of demand for goods and services, is known as demand side unemployment.
So, the correct answer is B. Demand side Unemployment.
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