Unformatted text preview: campaigning for office often speak about how their proposed policies will help create jobs. In the preceding two chapters we have seen some of the forces that determine the level and growth of a country’s standard of living. A country that saves and in-vests a high fraction of its income, for instance, enjoys more rapid growth in its capital stock and its GDP than a similar country that saves and invests less. An even more obvious determinant of a country’s standard of living is the amount of unemployment it typically experiences. People who would like to work but cannot U N E M P L O Y M E N T A N D I T S N A T U R A L R A T E 579...
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- Spring '10
- Unemployment, distressing economic event, ef ficiency wages