Tag: full-employment

2 pages tagged full-employment.

Pages

Chapter 44: Unemployment Defined — Economics 101

Unemployment is not simply ‘not working’ — it has a precise definition, three qualitatively different types, and a measurable cost to individuals and the whole economy. Understanding these distinctions explains why policymakers respond differently to different unemployment episodes.
Chapter 49: Macroeconomic Equilibrium — Economics 101

Macroeconomic equilibrium is where aggregate demand meets aggregate supply. Short-run equilibria can sit above or below the economy’s long-run potential — creating inflationary or recessionary gaps. Classical economists trust markets to close those gaps automatically; Keynesians don’t.