Microeconomics in Context by Neva Goodwin download in iPad, ePub, pdf
Classical unemployment theory suggests that unemployment occurs when wages are too high for employers to be willing to hire more workers. Economists look for macroeconomic policies that prevent economies from slipping into recessions and that lead to faster long-term growth.
The amount of unemployment in an economy is measured by the unemployment rate, i. When the government takes on spending projects, it limits the amount of resources available for the private sector to use.
Students are expected to complete the course of study set forth in the syllabus to properly prepare for the final examination. Outside of macroeconomic theory, these topics are also important to all economic agents including workers, consumers, and producers. Central bankers try to stabilize prices to protect economies from the negative consequences of price changes. Defenders of fiscal stimulus argue that crowding out is not a concern when the economy is depressed, plenty of resources are left idle, and interest rates are low.
Some products are, or at least are seen as, commodities. If labor and capital were the only costs, we could determine the resulting profit.
Many of the supermarkets monitor price changes in other supermarket chains and vary their prices accordingly until they reach the point where any further decrease in their price will affect profits. Okun's law represents the empirical relationship between unemployment and economic growth. Includes procedures and problems in starting a business, managerial functions, marketing, and financing a new enterprise, as well as governmental regulations. Alternatively, unions seek to restrict the supply of labor to increase wages by lobbying for laws that restrict that age a person is eligible to work or the number of hours they are allowed to work.