SOCL 3601 : Test 3
Document Summary
Gdp) the market value of final goods and services produced in an economy, stated in the: major issue: fluctuations over time (micro-economics: calendar time different from prices of a given year. True problem of unemployment: there is no true number that measures unemployment. What matters is the pattern/trend along a timeline. It doesn"t account for wasted resources and energy. The true problem for the macroeconomic perspective is inefficiency : example: a person unemployed but wants to work those goods and services are not produced lost opportunity (discouraged workers). Also, a person employed part-time who wants to work full-time underutilized (under employed). Discouraged workers and underemployed when added to unemployment rate increases it from 8. 3-14. 9. Unemployment trend today is going down but magnitude is still severe: there will always be unemployment in a dynamic economy, countercyclical with a lag (lag represents underemployment, during periods of recession, unemployment rate increases.
