Instructions: Each of your 2 replies must contain at least 1 or 2 paragraphs including a minimum of 200 words. One of your replies must cover a topic different than the one you discussed in your thread. Seek to understand your classmate’s thread, including the economic theory and facts he/she presented as well as his/her points of view and real-world example. Aim to communicate your own understanding of relevant facts, your values, and your perspective on the topic. Each reply must contain at least 1 citation in current APA format. Reply to these two: #1 Monica Three types of Unemployment Unemployment is divided into three categories by economist: frictional, structural, and cyclical. Frictional unemployment is unemployment due to constant changes in the economy that prevent qualified unemployed workers from being immediately matched up with existing job openings (Gwartney et al.)  Structural unemployment is unemployment due to structural characteristics of the economy that make it difficult for job seekers to find employment to hire workers (Gwartney et al.) Cyclical unemployment is unemployment due to recessionary business conditions and inadequate labor demand (Gwartney et al.) “Frictional unemployment is not as harmful to an economy as other types of unemployment, such as cyclical and structural unemployment. That's because a rise in frictional unemployment is simply an increase of workers moving toward better positions (Amadeo).” Frictional unemployment comes from imperfect information.  An example would be most businesses now when they are in the hiring process they will do a bunch of interviews and spend money trying to find the best person for that job. The people who are looking for jobs are constantly looking on the internet, the newspaper, local bulletin boards, and social media for the right job that fits them.  In the county I live with I see a lot of structural unemployment. People that do have job openings require education; the ones who are unemployed have no education so they aren’t qualified. A lot of office jobs require you to have computer knowledge. Around my home town, there is very little education especially when it comes to technology.  The last type of unemployment we see happening today all around the world.  Businesses are cutting back and laying employees off. Where I currently work, when someone leaves, they aren’t filling the positions. We have to do more work with fewer employees. I have a friend who lost her job and I try to encourage her to never give up and keep her faith. Philippians 4:5 states, “Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your request be made known to God.” That is a good scripture for everyone who is unemployed to keep in mind. Times can be tough when you are looking for a job, but the Bible tells us to never give up, and pray about it. Amadeo, K. (2014). Frictional Unemployment. US Economy. Retrieved from http://useconomy.

1. Instructions:
Each of your 2 replies must contain at least 1 or 2 paragraphs
including a minimum of 200 words. One of your replies must
cover a topic different than the one you discussed in your
thread. Seek to understand your classmate’s thread, including
the economic theory and facts he/she presented as well as
his/her points of view and real-world example. Aim to
communicate your own understanding of relevant facts, your
values, and your perspective on the topic. Each reply must
contain at least 1 citation in current APA format.
Reply to these two:
#1 Monica
Three types of Unemployment
Unemployment is divided into three categories by economist:
frictional, structural, and cyclical. Frictional unemployment is
unemployment due to constant changes in the economy that
prevent qualified unemployed workers from being immediately
matched up with existing job openings (Gwartney et al.)
Structural unemployment is unemployment due to structural
characteristics of the economy that make it difficult for job
seekers to find employment to hire workers (Gwartney et al.)
Cyclical unemployment is unemployment due to recessionary
business conditions and inadequate labor demand (Gwartney et
al.)
“Frictional unemployment is not as harmful to an economy as
other types of unemployment, such as cyclical and structural
unemployment. That's because a rise in frictional unemployment

2. is simply an increase of workers moving toward better positions
(Amadeo).”
Frictional unemployment comes from imperfect information.
An example would be most businesses now when they are in the
hiring process they will do a bunch of interviews and spend
money trying to find the best person for that job. The people
who are looking for jobs are constantly looking on the internet,
the newspaper, local bulletin boards, and social media for the
right job that fits them. In the county I live with I see a lot of
structural unemployment. People that do have job openings
require education; the ones who are unemployed have no
education so they aren’t qualified. A lot of office jobs require
you to have computer knowledge. Around my home town, there
is very little education especially when it comes to technology.
The last type of unemployment we see happening today all
around the world. Businesses are cutting back and laying
employees off. Where I currently work, when someone leaves,
they aren’t filling the positions. We have to do more work with
fewer employees.
I have a friend who lost her job and I try to encourage her to
never give up and keep her faith. Philippians 4:5 states, “Do not
be anxious about anything, but in everything by prayer and
supplication with thanksgiving let your request be made known
to God.” That is a good scripture for everyone who is
unemployed to keep in mind. Times can be tough when you are
looking for a job, but the Bible tells us to never give up, and
pray about it.
Amadeo, K. (2014). Frictional Unemployment. US Economy.
Retrieved from
http://useconomy.about.com/od/Employment/p/Frictional-
Unemployment.htm
English Standard Version. Bible Gateway. Web. 25 Oct. 2012.
Gwartney, J.D., Stroup, R.L., Sobel, R.S., & MacPherson, D.A.
(2013). Economics Private and Public Choice. Mason: South –
Western Cengage Learning

3. # 2 Daniel
Who Benefits From Inflation?
Inflation is “An increase in the general level of prices of
goods and services. The purchasing power of the monetary unit,
such as the dollar, declines when inflation is present”
(Gwartney). Inflation has many causes, one of which is when
the the demand rises more than supply rises. As competition
rises the price of the goods rise because there is more of a
demand for them (Harvey).
Many times inflation is seen as a negative thing, causing
prices to rise. Although some parties are hurt by the rise in
prices there are those that benefit. “Rising prices help
companies increase profits; rising wages help borrowers repay
debts. Inflation also encourages people and businesses to
borrow money and spend it more quickly” (Appelbaum). Many
economist argue that a moderate level of inflation will help
everyone suffering in a sluggish economy.
There are many real world examples of people that benefit
from inflation. In Anchorage, Alaska, a school board is leaning
on inflation to maintain a cap on teachers wages. Many stores
count on inflation to further their profit margins. The
government also benefits from inflation because it lessens the
overall weight of its debt (Appelbaum).
When thinking about the concept of inflation, and who
benefits from it, I’m reminded once again that we should put
our trust not in this world but in the world to come. Matthew
6:20 reminds us to lay our treasures in heaven, not in earth.
Because where our treasure is, there will our heart be as well.
No matter what we have in this life, the value of it is subject to
change. It’s value is subject to the same fate as the economy,
and will rise and fall with it. But the value of our relationship
with God will always remain. When all else passes away, He
remains.

4. Gwartney, James D.; Stroup, Richard L.; Sobel, Russell S.;
Macpherson, David A. (2014-02-03). Economics: Private and
Public Choice (Page 730). Cengage Learning. Kindle Edition.
Harvey, J. What Actually Causes Inflation (and who gains
from it). (2011, May 30). Retrieved September 5, 2014, from
http://www.forbes.com/sites/johntharvey/2011/05/30/what-
actually-causes-inflation/
Appelbaum, B. (2013, October 26). In Fed and Out, Many
Now Think Inflation Helps. Retrieved September 5, 2014, from
http://www.nytimes.com/2013/10/27/business/economy/in-fed-
and-out-many-now-think-inflation-
helps.html?pagewanted=all&_r=0