Macroeconomics 12th Edition by Michael Parkin

Exercise 1

Debate on Causes of Joblessness Grows
What is the cause of the high unemployment rate One side says there is not enough govern­ment spending. The other says it's a structural problem-people who can't move to take new jobs because they are tied down to burdensome mortgages or firms that can't find workers with the requisite skills to fill job openings. Source: The Wall Street Journal, September 4, 2010 Which business cycle theory would say that most of the unemployment is cyclical Which would say it is an increase in the natural rate Why