ECO 202 Lecture Notes - Lecture 5: Structural Unemployment, Government Spending
13 Sep 2017
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Document Summary
Very experienced workers are leaving the labor force and will be replaced by newer, less experienced workers. Very low inflation ratethe salaries of new workers are growing slowly. Unemployed were drafted or used in the labor force at home(women) How does standard of living increase? increases through an increase in labor productivity. Labor productivity in rich countries increases through technological advances. Labor productivity in poor countries increases through increase in capital goods(new equipment, etc ) You give up working a minimum wage job to go to college and get a better education in hopes that you will make more money later on. 4. 3% it is at a 16yr low. The standard of living of all countries will eventually converge. Poor countries will copy the technology of the rich countries. Rich countries will invest in the poor countries, because they can make a higher profit there. The standard of living in rich countries are converging.
