Transcript Document 9652181

Matakuliah
Tahun
: F0882 - Economic Analysis
: 2009
UNEMPLOYMENT AND THE
FOUNDATIONS OF AGGREGATE SUPPLY
Chapter 11
Learning Outcomes
• The Foundations of Aggregate Supply
• Unemployment
Bina Nusantara University
3
How Do Growth in Potential Output and
Cost Increases Affect Aggregate Supply?
In Reality, Aggregate Supply Shifts Combine
Cost Increases and Increased Potential Output
AS Is Relatively Flat in the Short Run but
Turns Vertical in the Long Run
Labor-Force Status of the Population, 2003
Okun’s Law Illustrated, 1955-2002
Inflexible Wage Can Lead to Involuntary
Unemployment
Most Unemployment in the
United States Is Short-Term
Distribution of Unemployment
by Reason, 1982 and 2000
Unemployment Rates of
Different Groups
Unemployment in the United States and
Europe