scroll to top
Stuck on your essay?
Get ideas from this essay and see how your work stacks up
Word Count: 680
ECON 240 Assignment 1 The full-employment rate is an arbitrary level of employment that takes into account frictional and structural unemployment It is used to calculate equilibrium in the changing labor market It is difficult to calculate the full-employment rate Economists first find the natural rate of unemployment in so many words means that those members of the labor force that really want a job have one If there is an agreed natural unemployment rate of 5 and the unemployment rate is 8 then it can be said that there are workers that desire a job and are unable to find one Conversely if the natural unemployment rate is 5 and the unemployment rate is 3 then theoretically everyone who is interested in obtaining a job has one From 1950 to 1960 the full-employment rates fell between 3 and 5 However in the 1970s the post World War II baby boomers began to enter the labor force as well as half of the eligible women began working This added a great deal of young and inexperienced people to the job pool The natural unemployment rate then increased to somewhere around 7 Now in the early 21st century those baby boomers will be retiring from the labor force decreasing the natural rate of unemployment and the full-employment rate The Gross Domestic Product GDP is the total market value of all final goods and services produced by factors of production located within a nations borders This can be calculated using either the expenditure approach or the income approach However some production is not included in the GDP If it is only calculating the products sold in the market then the DIY production is not calculated One of the largest sections of our national income that GDP cannot calculate is the underground economy or money made by illegal activities This would include the money exchanged as a result of drugs or prostitution and also
@Kibin is a lifesaver for my essay right now!!
- Sandra Slivka, student @ UC Berkeley
Wow, this is the best essay help I've ever received!
- Camvu Pham, student @ U of M
If I'd known about @Kibin in college, I would have gotten much more sleep
- Jen Soust, alumni @ UCLA