Economics A-Level
Demand-deficient (cyclical) unemployment
What Demand-deficient (cyclical) unemployment means in Economics A-Level, as defined for AQA.
Definition of Demand-deficient (cyclical) unemployment
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Reference: AQA
Illustrated by a leftward shift in AD, as the new equilibrium occurs at a lower level of real GDP, meaning fewer workers are required to produce the reduced output.
Topics that use Demand-deficient (cyclical) unemployment
- Aggregate demand and aggregate supply analysis (AQA A-Level)
Related terms
- Aggregate demand
- Aggregate demand components
- Aggregate supply
- Costs of production
- Economic shocks
- Factors of production
- Macroeconomic equilibrium
- Macroeconomic performance
Using Demand-deficient (cyclical) unemployment in the exam
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