Macroeconomics 8th Edition by David Colander

Exercise 1

In H. G. Wells's Time Machine, a late-Victorian time traveler arrives in England some time in the future to find a new race of people, the Eloi, in their idleness. Their idleness is, however, supported by another race, the Morlocks, underground slaves who produce the output. If technology were such that the Elois' lifestyle could be sustained by machines, not slaves, is it a lifestyle that would be desirable? What implications does the above discussion have for unemployment?