Principles of Economics- Mankiw (5th) 561

Principles of Economics- Mankiw (5th) 561 - campaigning for...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
IN THIS CHAPTER YOU WILL . . . Examine how unemployment results when firms choose to pay efficiency wages Consider how unemployment can result from minimum-wage laws Learn about the data used to measure the amount of unemployment Consider how unemployment arises from the process of job search See how unemployment can arise from bargaining between firms and unions Losing a job can be the most distressing economic event in a person’s life. Most people rely on their labor earnings to maintain their standard of living, and many people get from their work not only income but also a sense of personal accom- plishment. A job loss means a lower living standard in the present, anxiety about the future, and reduced self-esteem. It is not surprising, therefore, that politicians
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

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 countrys 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 countrys 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...
View Full Document

Ask a homework question - tutors are online