2006-08-11 05:20:23 · 5 answers · asked by Rosy 1 in Social Science ➔ Economics
yes, it is ideal that unemployment be as low as possible so the economy is at its most productive.
2006-08-11 05:23:39 · answer #1 · answered by tjslove 3 · 0⤊ 0⤋
No, a macroeconomist would say that the ideal state for an economy would be at full employment. Many believe this is at around 5%. When you go beyond full employment some of the workers are unsuitable for the jobs they are doing (ever here a business owner say "You can't get good help these days.") Beyond full employment this happens a lot. Growth is restrained and the economic boom will be on borrowed time (look at the late ninities).
If you have less the full employment then labor is being under utilized and those resources are being lost.
2006-08-11 14:57:45 · answer #2 · answered by MikeD 3 · 0⤊ 0⤋
Not always,a macroeconomist would be happy if both unemployment & inflation was low.
Also the utilization of labor would be a factor. A macroeconomist would not be happy with a country that decides to have everyone farm beets for example. Although employment would be 100%, lack of specialization would lead to a lower overall GPD.
2006-08-11 07:55:06 · answer #3 · answered by mindtweak 4 · 0⤊ 0⤋
Also may want to note that for a macroeconomist, they would still be happy if there was a larger amount of unemployment as long as the people don't stay unemployed very long. In other words, people are leaving jobs to find better ones or different ones, but don't remain unproductive for that long.
2006-08-11 07:10:37 · answer #4 · answered by TheSilence 1 · 0⤊ 0⤋
He would be, but he would also be concerned about inflation...
2006-08-12 12:05:36 · answer #5 · answered by NC 7 · 0⤊ 0⤋