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Q1 The form of the unemployment belongs to structural unemployment. Structure unemployment means the sort of permanent unemployment caused by old style industries collapsing and no substitute industries, which can recruit sufficient workforces. The main reason may be the substitute industries are enquired completely personal skills. According to the case, a couple decades after the Brutal factory closures, people have got second and third generation unemployment. Besides, due to no role models people can not find jobs which need their professional skills. Therefore, the unemployment belongs to structural unemployment. The new deal was a series of economic programs applied in the United States between 1933 and 1936. The programs were a liberal response to the great depression, and focus on relief; recovery; and reform. Which are relief for the unemployed and poor, recovery of the economy to normal levels, and reform of the financial system to stop a new depression. For individuals 1. Individuals may loss their social status because of being unemployed for a long time 2. Long term unemployed can cut off individuals’ financial source, which could reduce the quality of life. For business Because of long term employed for individuals, the demand of services and products may be declined. It is hard to recruit staff that has particular skills in the UK. According to the chart, it can be seen that unemployment summated in 1993 and then has gradually decreased. The whole trend of unemployment has soared 10% in the last two decades. Q2 Two aims: Decrease Government Expenditure. Increase Taxation. Fiscal methods are either to use taxation or spending to achieve ordered and stability growth. Effects of government spending Government’s incomes mainly come from taxation and spend on such areas as health services, education, social security and defence. Therefore, the government spending can affect almost everywhere of the country. Affect macroeconomic activity. Government exp