ECON 240 Assignment 1
The full-employment rate is an arbitrary level of employment that takes into account frictional and structural unemployment. It is used to calculate equilibrium in the changing labor market. It is difficult to calculate the full-employment rate. Economists first find the natural rate of unemployment; in so many words means that those members of the labor force that really want a job have one. If there is an agreed natural unemployment rate of 5% and the unemployment rate is 8% then it can be said that there are workers that desire a job and are unable to find one. Conversely, if the natural unemployment rate is 5% and the unemployment rate is 3% then theoretically everyone who is interested in obtaining a job has one. From 1950 to 1960 the full-employment rates fell between 3 and 5%. However, in the 1970s, the post World War II baby boomers began to enter the labor force, as well as half of the eligible women began working. This added a great deal of young and inexperienced people to the job pool. The natural unemployment rate then increased to somewhere around 7%. Now, in the early 21st century, those baby boomers will be retiring from the labor force, decreasing the natural rate of unemployment and the full-employment rate.
The Gross Domestic Product (GDP) is the total market value of all final goods and services produced by factors of production located within a nation s borders. This can be calculated using either the expenditure approach, or the income approach. However, some production is not included in the GDP. If it is only calculating the products sold in the market, then the DIY production is not calculated. One of the largest sections of our national income that GDP cannot calculate is the underground economy , or money made by illegal activities. This would include the money exchanged as a result of drugs or prostitution and also the evasion of taxes on legal activities as well. Many economists believe this amount of money exchanged to be quite substantial. The GDP ignores depreciation and fails to take into account the value of obsolete capital. GDP does not reflect all costs such as the effect our production has on the environment. Another disadvantage to using GDP in measuring our well being is that the GDP values all output equally. Market price determines the value of an output. Each dollar that is spent is counted the same.
Of course, as with any event, there are always beneficiaries and losers. Such is the case when inflation occurs as well. When we are in a state of inflation, the average of all prices of goods and services in our economy is rising. Who can benefit and who can lose depends on which type of inflation is occurring. Anticipated inflation is the rate of inflation that we believe will occur. Unanticipated inflation is just that; it is inflation that we were not expecting to occur. If there is a period of unanticipated positive inflation, creditors would lose and those borrowing credit would win. Banks, Venture Capitalists, and Credit card companies all stand to lose money on the money that they have loaned. Businesses and households and possibly State Governments gain because the nominal interest rate they are being charged does not fully compensate for the inflation that actually occurred. Conversely, when there is a period of negative unanticipated positive inflation, the borrowers lose and the creditors gain.
If you were planning on borrowing money, you would need to know the real rate of interest that you will have to pay. The real rate of interest is calculated by taking the nominal rate of interest minus the anticipated rate of inflation. If you borrow money at 5%, and you anticipate an inflation rate of 5%, then your real rate of interest would be zero. If you knew that prices were going to go up, it would be advantageous to borrow money at a fixed interest rate. Therefore, if inflation occurs while you are paying back your money each month, you would be paying less back because of the tendency of money to depreciate when inflation occurs.
Другие работы по теме:
Affirmative Action Essay Research Paper Affirmative ActionPresident
Affirmative Action Essay, Research Paper Affirmative Action President John F. Kennedy used the phrase “affirmative action” in March of 1961, when he put into effect Executive Order 10925. The order required every federal contract to include the pledge that “The Contractor will not discriminate against any employee or applicant for employment because of race, creed, color, or national origin.
The Industrial Revolution Essay Research Paper The
The Industrial Revolution Essay, Research Paper The industrial revolution My view of the industrial age started in the 1700 A positive effect of the industrial revolution was the greatly enhanced labor productivity brought about by the mechanization of production processes (and the resulting widespread adoption of coal or water power factory-based manufacturing).
Sonnet About Death Essay Research Paper Death
Sonnet About Death Essay, Research Paper Death is full of sorrow and surprise Sooner or later it comes at anytime. Even though I do not remember my demise In my hearts I still remember my greatest crime.
Eco 2 Essay Research Paper SURVEYOR NEEDEDSurveyor
Eco 2 Essay, Research Paper SURVEYOR NEEDED Surveyor Job Description The Canadian Government is looking for a surveyor. This could be your lucky day. If you are totally identical to what is bellow then we want you. So don’t miss out on this great opportunity. Fill out your Resume today.
Drugs In Society Essay Research Paper The
Drugs In Society Essay, Research Paper The most significant problem facing young people in the inner city today is one problem but many problems put together. The use of drugs and the crime that occurs all intertwine and form one big problem. Also the lack of education doesn t help the young people either.
Business Knowledge Essay Research Paper Using Your
Business Knowledge Essay, Research Paper Using Your Business Knowledge 1. Babysitting-I make very good money and it?s a very good learning experience on how to deal and take care of children which is something that everyone needs to eventually learn in life.
Sex Religion Discrimination Essay Research Paper The critical
Sex+Religion Discrimination Essay, Research Paper The critical issue in this case is whether Farm Fresh Food, Inc. acted lawfully by denying employment to Jennifer Brand. Farm Fresh Foods further claim that Ms. Brand failed to establish a prima facie case of discrimination based on sex or religion. Furthermore, they claim that even had such case been established, Farm Fresh decision to deny employment to Ms.
They Know Essay Research Paper Out of
They Know Essay, Research Paper Out of my love for you is conceived only pain However that gives me some pleasure Your face reflects the night of a full moon
Retaining Employees Essay Research Paper An important
Retaining Employees Essay, Research Paper An important factor in retaining employees that is sometimes highly overlooked is making the employee feel that they make a difference, and the rewarding of exceptional employee performance. When searching for employment almost everyone looks for salary, benefits, and other perks but more recently another important factor is job satisfaction.
Cutting The City Essay Research Paper New
Cutting The City Essay, Research Paper New York City is overpopulated, and the population needs to be cut in half. The first system proposed is called Operation Actually Thought About. Some of the most important fields of employment will receive a break in this plan. Teachers, doctors, lawyers, and politicians will only have their numbers cut by one-third.
Pushcart War Essay Research Paper Harry S
Pushcart War Essay, Research Paper Harry S. Truman Harry S. Truman was sworn into office on April 12, 1945 as the thirty-third President of the United States of America. He did not win an election, but he was the Vice President under President Franklin Roosevelt who had died so Harry Truman became President.
Moments Essay Research Paper I know I
Moments Essay, Research Paper I know I said yes, But deep down inside, Divided, Undecided. Days passed. That night, Before the day, Sleepless, Full of thoughts,
Greenspan Essay Research Paper Federal Reserve Board
Greenspan Essay, Research Paper Federal Reserve Board Chairman Alan Greenspan vows to promote ?low and stable inflation.? The main goal of the U.S. economy is to maintain price stability. This reduces the likelihood that imbalances could develop that would ultimately undermine the record economic expansion that the U.S. is currently having.
Teen Employment Essay Research Paper To Work
Teen Employment Essay, Research Paper To Work or Not To Work According to juniorjobs more teens are working today then ever. In 1980 one out of every ten teens was working part time, and 1 out 20 teens was working
Patriot Games Essay Research Paper If your
Patriot Games Essay, Research Paper If your looking for a great novel full of action and suspense but much more believable than many science fiction stories, definitely
Sexual Harassment 101 Essay Research Paper sexual
Sexual Harassment 101 Essay, Research Paper sexual harassment History & the Law Under Title VII of the Civil Rights Act of 1964, Sexual harassment is a form of sex discrimination. Federal law as well as various state fair-employment laws prohibit employers with 15 or more employees from treating members of one sex or race differently from members of the opposite sex or another race in terms, conditions, or privileges of employment.
Psychology Essay Research Paper Psychology is the
Psychology Essay, Research Paper Psychology is the study of human behavior, how we think, feel and act. Psychologists study both normal and abnormal behavior to understand it. Psychologists also try to use what we learn from that study to help people change aspects of their behavior that they want to change.
The Particular Features Of The Employmentsystem In
Essay, Research Paper The Particular Features Of The EmploymentSystem In Japan One of the unique and well known features of theJapanese employment system is permanent employment forworkers. Japanese corporations responses to recessionaryperiods provide an opportunity to sort out the myths from therealities of the Japanese permanent employment system.
Chemist Essay Research Paper Becoming a chemist
Chemist Essay, Research Paper Becoming a chemist takes a lot of hard work and discipline. One very importan aspect of being a chemist is English, Comunication is of the utter most importance
Concerns Facing The United States In The
1990s: Crime, Education, And Employment Essay, Research Paper Concerns Facing the United States in the 1990s: Crime, Education, and Employment A variety of concerns face the United States in the 1990’s. Among these
Sexual Harassment 3 Essay Research Paper Is
Sexual Harassment 3 Essay, Research Paper Is sexual harassment against men recognized in today s workplace? Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitutes sexual harassment. When submission to or rejection of this conduct affects an individual’s employment, unreasonably interferes with an individual’s work performance or creates an intimidating, hostile or offensive work environment, the harassment should be reported.
Welfare Essay Research Paper In brief first
Welfare Essay, Research Paper In brief, first, the global economy has brought with it high rates of unemployment and economic inactivity in much of Europe. It has also generated strong pressures to de-regulate and create flexible labour markets with sharp rises in wage dispersion, part-time, temporary and casual employment particularly in the UK and USA.
Article 23 Essay Research Paper Universal Declaration
Article 23 Essay, Research Paper Universal Declaration Of Human Rights ARTICLE 23 -Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment-
Fiscal Policy Essay Research Paper Policy that
Fiscal Policy Essay, Research Paper Policy that uses taxation and government spending to steer the economy. Fiscal policy describes two governmental actions by the government. The first is taxation. By levying taxes the government receives revenue from the populace. Taxes come in many varieties and serve different specific purposes, but the key concept is that taxation is a transfer of assets from the people to the government.
Balancing Your Work Essay Research Paper For
Balancing Your Work Essay, Research Paper For the working adult, being a full time college student can be quite stressful. It can also be challenging, fun, and rewarding. In order to become a successful student you must learn to balance and organize the different elements of your life. Three of the major elements will be work, studying and relaxing.
The Playground Essay Research Paper I have
The Playground Essay, Research Paper I have a friend I used to know who had a playground where we would go The times we had are fresh in my mind but they are from another time
Finding A Job Essay Research Paper Finding
Finding A Job Essay, Research Paper Finding a job in ones field may be hard. One should have lots of ambition and patience in looking for that one job. One should look threw different kinds of newspapers, ask friends and families, and call to set up interviews. Looking for a job does not have to be hard. One should take their time and decide on a job that makes them happy.
Bull Rider Essay Research Paper I can
Bull Rider Essay, Research Paper I can remember my first time to ride a bull All of the thoughts in my head were nice and full The sight of the beast below me was scary