... unemployment accept that those industries in decline are locally based, as a result the local economy falls into depression. Fractional Unemployment - This occurs when people are between jobs; they leave one job to look for another and feel confident of finding one. This is also known as short-term unemployment. Technical Unemployment - Due to the introduction of new technology companies can achieve higher levels of productivity. This results in an excess of man power and results in a less labour. (Companies become capital intensive). Keynesianism also faced the problem of balance of payments. The problem arose due to the fact that predictions could not be made with reference to whether or not consumers would spend their money on imports. People spending their money on foreign imports meant that money was leaving the UK, not circulating within the UK economy. As a direct result of this the pound was devalued during the ...

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