Stable prices

Stable prices - Absolute full employment is impossible to...

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Stable prices When prices for goods and services increase sharply, the value of money is reduced,  and it costs more to buy the same things. This condition is called  inflation.  When  inflation is kept low, prices remain at the same level. Circumstances beyond the  government's control can affect prices. A prolonged drought in the corn belt or an early  freeze that hits the orange crop in Florida creates shortages that lead to higher prices.  Higher prices for certain critical goods, such as oil, can create inflationary prices  throughout the economy.  Full employment
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Unformatted text preview: Absolute full employment is impossible to achieve; at any given time, people are quitting their jobs or are unable to work for a variety of reasons. An unemployment rate, the percentage of the labor force that is out of work, of 4 percent or less is considered full employment. The unemployment rate varies from region to region and from state to state. For example, California's rate was higher than the national average in the early 1990s because of cutbacks in the aerospace industry and companies moving out of the state....
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This note was uploaded on 11/20/2011 for the course POSI 1310 taught by Professor Arnold during the Spring '08 term at Texas State.

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