Unemployment costs the United States at least $400 billion per year in lost output. This number does not begin to add up the total costs of unemployment that include many serious social problems like increased divorce and crime rates. If unemployment costs so much, why don't we simply pump up demand and push the unemployment rate down? The answer lies in the relationship between inflation and unemployment: we simply cannot push unemployment below the rate that is compatable with stable inflation.
Must we, then, just live with unemployment? No. But to understand how we can reduce...
Unemployment costs the United States at least $400 billion per year in lost output. This number does not begin to add up the total costs of unemplo...
