TYPES OF INFLATION

1. Demand-pull inflation exists when aggregate demand for a good or

service outstrips aggregate supply. It starts with an increase in consumer
demand. Sellers meet such an increase with more supply.

2. Cyclical Unemployment
Cyclical unemployment is when the demand for goods and services in an
economy decreases, forcing companies to lay off workers in an effort to cut
costs.

3. Frictional Unemployment
Frictional unemployment is a type of unemployment that arises when workers are searching
for new jobs or are transitioning from one job to another. It is part of natural unemployment

4. Seasonal unemployment
Seasonal unemployment occurs when people are unemployed at certain times of the year,
because they work in industries where they are not needed all year round

5. Regional unemployment
When structural unemployment affects local areas of an economy, it is
called ‘regional’ unemployment. For example, unemployed car workers in
the Midlands and Essex add to regional unemployment in these areas

6. Voluntary unemployment
voluntary unemployment is defined as a situation when workers choose not to work at
the current equilibrium wage rate. For one reason or another, workers may elect not to
participate in the labour market