The Labor Market, Unemployment, and Inflation
Upcoming SlideShare
Loading in...5
×
 

Like this? Share it with your network

Share

The Labor Market, Unemployment, and Inflation

on

  • 1,725 views

 

Statistics

Views

Total Views
1,725
Views on SlideShare
1,725
Embed Views
0

Actions

Likes
3
Downloads
267
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

The Labor Market, Unemployment, and Inflation Presentation Transcript

  • 1. The Labor Market, Unemployment, and Inflation
  • 2. The Classical View of the Labor Market
    • The view of classical economists was that if the quantity of labor demanded and the quantity of labor supplied are brought into equilibrium by rising and falling wage rates, there should be no persistent unemployment above the frictional and structural amount.
  • 3. The Classical View of the Labor Market
    • The labor demand curve illustrates the amount of labor that firms want to employ at the particular wage rate.
    • The labor supply curve illustrates the amount of labor that households want to supply at the particular wage rate.
  • 4. The Classical View of the Labor Market
    • If labor demand decreases, the equilibrium wage will fall. Everyone who wants a job at W* will have one. There is always full employment in this sense.
    • Classical economists believe that the labor market always clears.