Chapter 6 Wage Setting= (P^e)*F(u , z)- + By giving unemployment insurance, we keep the economy from going down the drain. If people have no money to spend, more people end up being unemployed. However, if the money paid to the unemployed is too high, then there is little incentive to go back to work. When people are “replaced” by machines, people have to be hired to maintain and create the machines. Also, whole new industries have to be created (i.e. Geek Squad).
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This note was uploaded on 04/09/2008 for the course ECON 3120 taught by Professor Belton during the Spring '07 term at Georgia Tech.