I have 2 question about economics?

2014-02-21 9:01 am
1) Why natural unemployment rate sometimes higher than unemployment rate?
2) The biggest reason for structural unemployment
I think it is recession cycle
minimum wage? Union? Efficiency wage?
Yes , but not most serious

回答 (1)

2014-02-21 12:37 pm
1) natural unemployment rate is only gov.'s assessment and is related to structural one and since structure can change or be perceived wrong, this rate could be shown above actual one, to great pleasure of gov.'s bureaucrats, semi-bureaucrats and paid economists and statisticians.
textbook style answer is GDP goes above potential GDP , but these are all relative perspectives usually used to fool us.

2)the biggest reason for structural unemployment is country's culture. someone said you can never change it, so just make best of it.
e.g. americans are addict to easy money, noerthwest europe is addict to benefits, indians are addict to corruption and fake numbers, chinese are addict to hard work and juggleries like state's capitalism.


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