InstructionsEach of your 2 replies must contain at least .docx
- 1. Instructions: Each of your 2 replies must contain at least 1 or 2 paragraphs including a minimum of 200 words. One of your replies must cover a topic different than the one you discussed in your thread. Seek to understand your classmate’s thread, including the economic theory and facts he/she presented as well as his/her points of view and real-world example. Aim to communicate your own understanding of relevant facts, your values, and your perspective on the topic. Each reply must contain at least 1 citation in current APA format. Reply to these two: #1 Monica Three types of Unemployment Unemployment is divided into three categories by economist: frictional, structural, and cyclical. Frictional unemployment is unemployment due to constant changes in the economy that prevent qualified unemployed workers from being immediately matched up with existing job openings (Gwartney et al.) Structural unemployment is unemployment due to structural characteristics of the economy that make it difficult for job seekers to find employment to hire workers (Gwartney et al.) Cyclical unemployment is unemployment due to recessionary business conditions and inadequate labor demand (Gwartney et al.) “Frictional unemployment is not as harmful to an economy as other types of unemployment, such as cyclical and structural unemployment. That's because a rise in frictional unemployment
- 2. is simply an increase of workers moving toward better positions (Amadeo).” Frictional unemployment comes from imperfect information. An example would be most businesses now when they are in the hiring process they will do a bunch of interviews and spend money trying to find the best person for that job. The people who are looking for jobs are constantly looking on the internet, the newspaper, local bulletin boards, and social media for the right job that fits them. In the county I live with I see a lot of structural unemployment. People that do have job openings require education; the ones who are unemployed have no education so they aren’t qualified. A lot of office jobs require you to have computer knowledge. Around my home town, there is very little education especially when it comes to technology. The last type of unemployment we see happening today all around the world. Businesses are cutting back and laying employees off. Where I currently work, when someone leaves, they aren’t filling the positions. We have to do more work with fewer employees. I have a friend who lost her job and I try to encourage her to never give up and keep her faith. Philippians 4:5 states, “Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your request be made known to God.” That is a good scripture for everyone who is unemployed to keep in mind. Times can be tough when you are looking for a job, but the Bible tells us to never give up, and pray about it. Amadeo, K. (2014). Frictional Unemployment. US Economy. Retrieved from http://useconomy.about.com/od/Employment/p/Frictional- Unemployment.htm English Standard Version. Bible Gateway. Web. 25 Oct. 2012. Gwartney, J.D., Stroup, R.L., Sobel, R.S., & MacPherson, D.A. (2013). Economics Private and Public Choice. Mason: South – Western Cengage Learning
- 3. # 2 Daniel Who Benefits From Inflation? Inflation is “An increase in the general level of prices of goods and services. The purchasing power of the monetary unit, such as the dollar, declines when inflation is present” (Gwartney). Inflation has many causes, one of which is when the the demand rises more than supply rises. As competition rises the price of the goods rise because there is more of a demand for them (Harvey). Many times inflation is seen as a negative thing, causing prices to rise. Although some parties are hurt by the rise in prices there are those that benefit. “Rising prices help companies increase profits; rising wages help borrowers repay debts. Inflation also encourages people and businesses to borrow money and spend it more quickly” (Appelbaum). Many economist argue that a moderate level of inflation will help everyone suffering in a sluggish economy. There are many real world examples of people that benefit from inflation. In Anchorage, Alaska, a school board is leaning on inflation to maintain a cap on teachers wages. Many stores count on inflation to further their profit margins. The government also benefits from inflation because it lessens the overall weight of its debt (Appelbaum). When thinking about the concept of inflation, and who benefits from it, I’m reminded once again that we should put our trust not in this world but in the world to come. Matthew 6:20 reminds us to lay our treasures in heaven, not in earth. Because where our treasure is, there will our heart be as well. No matter what we have in this life, the value of it is subject to change. It’s value is subject to the same fate as the economy, and will rise and fall with it. But the value of our relationship with God will always remain. When all else passes away, He remains.
- 4. Gwartney, James D.; Stroup, Richard L.; Sobel, Russell S.; Macpherson, David A. (2014-02-03). Economics: Private and Public Choice (Page 730). Cengage Learning. Kindle Edition. Harvey, J. What Actually Causes Inflation (and who gains from it). (2011, May 30). Retrieved September 5, 2014, from http://www.forbes.com/sites/johntharvey/2011/05/30/what- actually-causes-inflation/ Appelbaum, B. (2013, October 26). In Fed and Out, Many Now Think Inflation Helps. Retrieved September 5, 2014, from http://www.nytimes.com/2013/10/27/business/economy/in-fed- and-out-many-now-think-inflation- helps.html?pagewanted=all&_r=0