Unemployment is a macroeconomic phenomenon that directly affects people

Unemployment is a macroeconomic phenomenon that directly affects people

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Unemployment is a macroeconomic phenomenon that directly affects people. When a  member of a family is unemployed, the family feels it in lost income and a reduced  standard of living. There is little in the realm of macroeconomics more feared by the  average consumer than unemployment. Understanding what unemployment really is  and how it works is important both for the economist and for the consumer, as it is often  discussed.  The Costs of Unemployment  Because most people rely on their income to maintain their standard of living, the loss of  a job will often directly threaten to reduce that standard of living. This creates a number  of emotional problems for the worker and the family. In terms of society, unemployment  is harmful as well. Unemployed workers represent wasted production capability. This  means that the economy is putting out less goods and services than it could be 
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This note was uploaded on 12/13/2011 for the course ECO 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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