You should be able to verbally and graphically describe what happens in each market if the demand or supply of either the product, labor, or capital changes. If you are uncertain, review the basics of market equilibrium in Unit 4. Unemployment Unemployment is a measure of those people who are actively seeking work but cannot find a job which matches their qualifications. As Figure 1-2 shows, unemployment represents an underutilization of resources. Before giving the details of unemployment we should note that macroeconomic policies do not desire to provide all individuals with jobs.
Some people choose to be unemployed voluntarily .
Individuals may choose to be unemployed as they switch jobs, move from on region of the country to another, or for various other reasons. The goal of macroeconomic policy is to achieve full employment . Full employment is described as the absence of involuntary unemployment. Involuntary unemployment is that characterized by individuals who would like a job that matches their skills, but none are available. This may sound clear, but the study of economics is often the examination of shades of gray.