Difference between Disguised Unemployment and open industrial Unemployment


The disguised unemployment of under developed countries in agriculture is different  from the open industrial unemployment to be found in the developed countries the cause of open unemployment in the industrial countries is the deficiency of effective demand during depression . owing to a reduction in aggregate demand. Output is reduced in some factories and other factories are altogether closed on account of lack of demand . output is reduced  in some factories and other factories are altogether closed on account of lack of demand, of their goods. As a result, labor in spite of the availability of capital. The cause of this unemployment , as we have said just said now is the reduction in aggregate demand.

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