Gm 545 Wee4

401 Words2 Pages
aqssignmentChapter 15, Question 14 of the limitations of the national income accounts in how they represent our standard of living? The problem is that that by viewing national income this only give us an idea of the standard of living of a given region and not the quality of their life. These income accounts give us an idea of the amount of money that each family has on average and per capita. But they do not give us an idea of the ways deal with their quality of life. What kinds of schools are avaialable to them? What is the life expectancy of this region? There may be two countries that have similar income levels on average but one country has a much higher level of education and life expectancy for their country as opposed to the other one. Even though they have similar income levels and GNP measures, you could argue that one country still has a far better standard of living due to the non-monetary aspects (education and life expectancy). Chapter 16, Question 5 Why is frictional unemployment important to have in any economy? Frictional unemployment is the sign of an economy’s strength and unemployment that is in a fast- paced economy with an expanding labor force. This unemployment is suitable to workers as it allows them to search for jobs that they want the most. It also benefits the company, because it allows them to obtain the best talent. Without frictional unemployment people remain in the same career for life Frictional unemployment is important in the economy because it matches the worker with supply and creates equilibrium in the labor market. Frictional employment starts from those candidates that are just leaving school and those who become unemployed because they are changing jobs. * Chapter 16, Question 6 6. Explain why hyperinflation has such a devastating impact on economies. Explain what it takes to stop hyperinflation.
Open Document