ECON 2000 1st Edition Lecture 26Outline of Last Lecture V. Unemploymenta. Seasonalb. Frictionalc. Structural d. Cyclicale. Target Unemployment rate 4.6%Outline of Current LectureVI. Arguments about low unemploymenta. Costs of low unemploymentb. Arguments for Seasonal unemploymentc. Arguments for Frictional unemploymentArguments for structural unemployment VII. Arguments about High Unemploymenta. Costs of high unemploy.b. Social cost of unemploymentCurrent LectureVI. Arguments about low unemploymenta. Costs of low unemploymenti. Creates inflation1. Losses benefits associated with all aspects of unemploymenta. Taking time off to improve education or skillsb. Arguments for Seasonal unemploymentii. Allows firms flexibilityiii. Lowers production costsiv. Helps keep prices lowv. Allows people to earn extra $c. Arguments for Frictional unemploymentvi. Allows for productive efficiencyvii. Allows for a flexible labor marketd. Arguments for structural unemployment viii. New tech help keep costs and prices lowix. Encourage education These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.1. creates economic growthVII. Arguments about High Unemploymenta. Costs of high unemploy.x. Revenues from taxes fallxi. Causes government spending1. Increase welfare programsa. There is an opportunity cost associated with that xii. Leads to higher unemployment1. No jobs = no money = no college = no jobsxiii. Production possibilities frontier = productively inefficientxiv. Social costsb. Social cost of unemploymentxv. Increase in crimexvi. Divorce rates increasexvii. Suicide rates
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