unemployment - Unemployment Feb11,2011...

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Unemployment Feb 11, 2011 Hyunjee Kim Section 108/207
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The Long-Run Solow Model – our model of long-run growth Given savings rate (s) and depreciation rate (d), output per worker (y) was determined by level of technology (T), capital per worker (k), and human capital per worker (h) So where is employment / unemployment in our model? Not present…why? in the long run we assume FULL EMPLOYMENT When we allow our society to underutilize resources ( Short-run), we can build models that explain unemployment.
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Unemployment… Unemployment is something that we as economists work very hard to eliminate Effects of unemployment: Impacts macro growth Microeconomics: psychological and health impacts
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Definitions
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Definitions Unemployment 1) Not currently working for pay, and 2) Being in the labor force (in other words, they put forth effort to find employment in the last 4 weeks) Unemployment rate U = 100 x Force Labor Unemployed 100 x d Unemploye Employed Unemployed + =
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What does unemployment measure? A fairly reliable indicator of recessions:
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unemployment - Unemployment Feb11,2011...

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