Purchase Solution

Unemployment, Wages, Prices and the Economy

Not what you're looking for?

Ask Custom Question

1. You may have experienced some of the hardships stemming from you or one of your family members losing a job. Are there additional costs experienced by the economy when unemployment increases?

2. Does getting large raises in your paycheck mean you're better off? What if prices are going up even faster? How do we know if prices are rising? Have prices and wages gone up, down, or remained relatively steady over the past few years?

3. How can you tell if the job market is strong or not? If you don't have a job, does that mean you're counted as unemployed?

4. Describe the process through which money is created. Explain how current events-events less than 90 days-have affected this process and the effect current events will have on the economy as a whole.

Attachments
Purchase this Solution
Solution Summary

Unemployment has a broad impact on the economy. Similarly, the rate for which wages increase relative to prices can have an undesirable economic impact. This solution addresses these issues and discusses how "unemployment" is defined and the effect of money creation on the economy.

Purchase this Solution
Free BrainMass Quizzes
Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Aggregate Supply and Demand, and Unemployment

    Due to this there would be a downward pressure on nominal wages, real wages, and prices pushing inflation down temporarily until the economy reaches point d.

  • Productivity, Inflation

    Assuming high levels of unemployment, and workers wouldn't be getting wage raises very easily, will the change in productivity likely increase or reduce prices in the economy?

  • Draw an AS/AD diagram

    When employees see things getting costlier they demand more in wages, and thus we get into a cycle of higher wages leading to higher prices to higher wages and on and on.

  • Current state of the economy

    Deflation or the lowering of prices is the outcome. Unemployment pushes wages down and often forces companies to streamline.

  • Insights of the classical and Keynesian views of wages

    Thus unemployment can be caused only by high and rigid real wages. The proper solution is to cut wages.

  • Inflation rate to accelerate if actual unemployment rate declined

    There are several reasons behind the recession in the US economy. For instance, in the USA, there is no job for the people. In addition, the prices of foods and gas are also high in the USA.

  • Reasons for the high rate of European unemployment

    Thus unemployment can be caused only by high and rigid real wages. The proper solution is to cut wages.

  • Economy

    In this case there is unemployment in the economy as the wages are sticky. Second there is frictional unemployment which the time period between jobs when the worker is searching for. This is transitional unemployment.

  • Productivity and real wages

    This is also referred to as the natural rate of unemployment. We use demand and supply curves to analyze the economy.

View More Related Solutions