Macro2B Essay Example | Topics and Well Written Essays - 1000 words - 1

Macro2B - Essay ExampleWorkers who spend time looking for employment are engaged in job search. This type of unemployment is the case of frictional employment, which is due to the time workers spend in job search. This exists plane when the number of people seeking jobs is equal to the number of jobs being offered, that is it does not mean that there is a surplus of labor. However, unemployment when there are more people seeking jobs in a labor foodstuff than there are jobs available at the current wage is called as structural unemployment.Both frictional and structural unemployment is inevitable in any delivery. Thus, a certain amount of unemployment is normal, which is called as the natural yard of unemployment. The natural rate of unemployment is the unemployment rate that arises from the effects of frictional plus structural unemployment. Actual unemployment rate fluctuates more or lesswhat the natural rate of unemployment. The natural rate of unemployment is calculated as4 . Perhaps tongue-in-cheek, some economists occasionally distinguish between good pomposity and bad inflation. Speculate as to why these economists might see some inflations as superior to others.Inflation is the sign that an economy is increase or expanding. The lack of inflation is an indicant that the economy is weakening. A small inflation is just as bad as high inflation. Thus, it is not easy to label inflation as good or bad, and it depend on overall economy and individual personal thinking.When an economy grows or expands (boom) the price level of goods and services rises. This effectively increases the inflation. Since, economy is growing people have more money to purchase and therefore, the purchasing power of individual increases comparatively. This type of inflation is generally referred as good inflation. If an economy continue to grows, there comes to a point (peak), when the inflation is withal high and government needs to do something to lower