emma_zoe99 Posted April 25, 2017 Report Share Posted April 25, 2017 Hey everyone, I really don't understand how to draw a structural unemployment graph, and my teacher is in the hospital. I am not able to find any info about it either. Please help Reply Link to post Share on other sites More sharing options...
master135 Posted April 30, 2017 Report Share Posted April 30, 2017 You would draw a labour market diagram for a specific industry and show a falling demand for labor in that industry.. 1 Reply Link to post Share on other sites More sharing options...
EconDaddy Posted May 1, 2017 Report Share Posted May 1, 2017 The previous answer is perfect, I'm just breaking it down a bit more to make sure you know what to draw: vertical axis: wages horizontal axis: quantity of labour (in that specific industry) curves: demand for labour (Dl1) + another one to the left (Dl2) and supply of labour (Sl) in that industry (and not ADL and ASL as those represent the total labour market of the whole economy). Structural unemployment will be represented at the original equilibrium wage level, where now there is a higher supply of labour (Sl) than demand for it (Dl2). DanielEconDaddy - IB Economics teacher and tutorwww.econdaddy.com 1 Reply Link to post Share on other sites More sharing options...
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