Tuesday 1 March 2011

There is too little money to spend

unemployment in united states http://youthcm.com
Youth Career Management (YCM) reports that: Cyclical unemployment is that there is too little money to spend, for example going to a rock concert. To understand this you must know what production is. The production capacity is the maximum possible production in a given period. The production shows how much a company or an entire country can produce up to a certain period. The utilization rate was calculated as follows:

Utilization = actual production X 100% capacity = load factor which will produce the company on the basis of the Production.

Actual production = more than what the company can produce.


When spending is low in relation to production, little is produced and there are redundancies. This so called cyclical unemployment. Economicwords, cyclical unemployment is caused by the effective demand are less than the capacity.

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