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31 May, 12:51

Which type of unemployment would increase if workers lost their jobs because their positions were replaced by an automated process?

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  1. 31 May, 14:56
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    This example of unemployment is associated with "Structural Unemployment". This type of unemployment is related to changes in market conditions. In this case, the greater demand for cars has made it necessary to improve the production process in order to increase the output of new cars. This automated process aims to achieve this at a lower cost, in comparison to having several employees whose total wage bill is probably higher than the operating costs of the new machines.
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