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Why are inflation and unemployment disadvantages of the open market?
Wiki User
∙ 14y ago
The open market allows that people will find their own jobs as part of the natural balancing of market forces.
This is a perceived disadvantage as in a controlled or closed market system every one has a job. (There are large practical disadvantages to this.)
Inflation is a normal function of a growing economy. As people work and time goes b they wish to be paid more. This drives up the cost of whatever item or service they provide.
This is seen as a disadvantage as the poor tend not to make gains in income as prices go up. What actually happens is as the economy expands the people at the bottom of the pay scale are able to find better jobs or there employers pay more. Those who don't progress this way are called "borderline unemployable" and will need to be helped by our social assistance systems.
Wiki User
∙ 14y ago
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What is meant by open inflation?
when prices go up freely due to the imbalance between demand and supply then that situation is called open inflation. this happens in a market economy .
What happens to the open market operations during inflation?
sell more government bonds
What are the three types of unemployment?
disguised unemployment,open unemployment,under unemployment
What is the difference between open unemployment and disguised unemployment?
In open unemployment it is easy to recognize but in disguised unemployment its difficult to recognize. Open unemployment offers no wages but disguised employment offers salaries .Open unemployment is more harmful in industries and disguised unemploymentare more harmful to the nation.
How does central bank control inflation?
the central bank controls inflation through one of the following, open market operation,special deposit,cash ratio,bank rate,funding,credit ceiling etc.
How central bank control inflation?
the central bank controls inflation through one of the following, open market operation,special deposit,cash ratio,bank rate,funding,credit ceiling etc.
WHERE IS THE BROOKLYN UNEMPLOYMENT LOCATED?
Where is the book my unemployment office it was the number and if they still open
What are some reforms that were used in Argentina to try to battle inflation?
In 1991, Domingo Cavallo set out to reverse Argentina's inflation through free-market reforms such as open trade. The cornerstone of the reform process was a currency board, under which the peso was fixed by law at par to the dollar.
How does the federal reserve buy and sell government securities?
This is called open market operations, they do this to increase the money supply, buy buying bonds or decrease the money supply by selling. They do this to control interest rates and inflation.
What are the advantages and disadvantages of a money market account?
A money market account is like a savings account. The disadvantage is that there will not be much interest or return. The advantage is , subject to the restrictions stated when you open the account, you can quickly get all your money out.
What is open unemployment?
In a nutshell, once a person has established employment, he qualifies for 'open unemployment'. Upon the person losing his job, he is entitled to 'open unemployment'. This is unemployment compensation that continues until he either finds another job, is rehired by the previous employer or he reaches the age of 60. This and other social programs are increasingly becoming the reasons for unstable economies around the world.
What is difference between disguised unemployment and seasonal unemployment?
open unemployment is a situation where people with the capability to work/to be employed are not employed and do not contribute to the nations productivity. It is easy to recognize opem unemployment. It does not offer any wages. It is harmful for the individuals' economy. Disguised unemployment is when people appear to be employed but their contributions towards the firm's output is very low and often negative. It is difficult to recognize disguised unemployment. It offers salaries/wages. It is harmful for the country's economy. One of the leading causes of low agricultural productivity in india.
