Chapter 15, Question #14 Three main limitation to national income accounting that I would like to discuss are; errors in measurement, subcategories that are misrepresented, and how welfare is not measured (EconPort). The gross domestic product, also known as GDP, is the market value of all final goods and services produced within a country in a given period. Errors in measurement come into play because we are unable to accurately figure out the United States gross domestic product numbers due to the Black Market. Also known as the underground economy but commonly referred to as the Black Market, effects a major part of the United Sates GDP but cannot be accurately accounted for nobody knows the overall numbers that the Black Market brings in. Therefore the so called overall GDP for the United States is only half of the real GDP of the nation. Subcategories are interpreted when it comes to the national income accounting. Government spending plays a huge factor but are sometimes not included all the time. Decisions are always made about what is to be included where, but minor discrepancies will always arise. The gross domestic product seems to only measure the market activity and not welfare as well. Situations such as unemployment could come into effect which could lower the nation's spending and eventually lower the GDP which will look like it is based on market value and not on welfare value.

Chapter 16 Question #5 Frictional unemployment is important to have in our economy because it is not considered full unemployment. It is a time period when a person is between jobs and is searching for another job. It is even considered the transition from one job to another in some cases. Frictional employment is a benefit to the economy because of the supply and demand that we have. The person is still getting paid whether it is from their previous job or from unemployment benefits and does not take a toll on our percentage of unemployment which can hurt our supply and demand and possibly cause inflation. Frictional unemployment will never go away for there is always someone out there that is between jobs or transitioning from jobs. Seasonal unemployment and frictional unemployment are very similar. Seasonal is when an employer lets go of employees during certain times, or in this case seasonal times, and than rehires them or hires new one at a different time or season (Nayab). Such examples could be fisherman and construction workers.

Chapter 16 Question #11
The three different types of unemployment are; frictional, structural, and cyclical. Frictional unemployment is like what was stated earlier, it can be considered a transition from one job to another. This is primarily done voluntarily and be the result of a search for a career enhancement or moving to a different city or state. Frictional unemployment does not last long for the supply and demand for people who are frictional unemployed is still high. For example a doctor that moves to a different state should not have a problem finding a new job versus someone like a coal miner. Speaking of a coal miner, that brings me to the next type of unemployment which is structural unemployment. This occurs when an employer or job market does not require the skills and knowledge of a particular worker any longer. They are than forced to search for a new job. This can be more difficult than somebody who is frictional unemployed because of the supply and demand of the person's career. Such examples would be painters, coal miners, and fisherman. If they decided to change careers to improve their chances within the supply and demand they will still have to stay unemployed to gather the necessary skills and knowledge of their new possible career (Highere). Lastly there is cyclical unemployment. This occurs when the supply and demand level shifts whether it goes up or it goes down. Say an accident happens that results in some type of deconstruction or major damage. The supply and demand for architects and construction workers would go up and people with those skills and knowledge in those career fields would be hired instantly. But say nothing needs repair or remodeling, then the supply and demand for those type of workers would go down and they would end up in cyclical unemployment.