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What is the Definition of Involuntary Unemployment? Or, What is Meant by Involuntary Unemployment?
in Economics by | 45 Views

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Involuntary Unemployment refers to the situation when some people are not getting work, even when they are willing to work at the existing wage rate. It is situation when AD is not enough to induce fuller utilisation potential output (full employment output). 

There is excess capacity in the economy, and some people are forced to remain unemployed. People fail to get enough jobs, owing to the low level of planned output ( caused by low level of Demand)

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