Allen Saparzadeh Econ 330 HW2 1. What do Neo-Classical Economists argue causes unemployment? Be very specific…is it good or bad for the economy, fair or unfair, voluntary or involuntary, etc. Explain carefully.
Neoclassical Economists believe that discrepancy in wages causes unemployment. They also believe that all types of unemployment are voluntary, efficient, fair, random, and self –correcting [by supply and demand]. They believe that a certain degree of unemployment is healthy. Types of unemployment include structural, frictional, and seasonal unemployment. 2. How does Keynes critique, and thus modify, the Neoclassical view of unemployment? Describe his contributions to the theories of unemployment.

Keynes describes unemployment as non-voluntary, unfair, inefficient, and does not believe that it will fix itself. He believes that unemployment is related to business cycles and that unemployment undergoes a positive feedback (unemployment leads to more unemployment). Keynes and other political economists believe that government intervention may be necessary to fix the unemployment issue.

3. Discuss what the gender gap is and the short and long-term impact it has on women and their families.
The gender gap is the ration between women’s wages and men’s wages for full time workers. Women on average make 77 cents for every dollar a man makes. Economists evaluate women make over $11,000 less a year, accumulating a gap of over $400,000 in her lifetime. 4. Discuss the persistence of the gender wage gap. What are reasons for the gender wage gap, according to Neoclassical Economists? What are reasons according to Political economists?

Gender gap continuously increases with age, expands over time. Women of all races and ethnicities are affected by it.
Neoclassical Economists argue that the gap is due to women’s choice to focus on home