Project 2
Running head: PROJECT 2

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Project 2

kgsm Business Economic GM545 May 2011 June 06, 2011

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Project 2 Chapter 16, Question 5 “Separation of days” is needed to curb and continue our economic rat race. It allows the old to move out, the young to move in, while those in the middle move up, down and sideways. Understanding that full unemployment can never be achieved, voluntary and temporary unemployment serve as the lesser of the “evils”. Additionally healthy economic indicators are when citizens 1) feel confident enough to leave their existing employment, it indicates a belief in the marketplace that opportunities are abundant and 2) are experiencing short periods of unemployment. The frictional unemployment segment provides both tangible and intangible information cues for the four key indexes used to monitor inflation in the U.S.

As an employer, I see the benefit of this segment because it offers me a larger pool of talent to choose from, thus improving my business. This pool of applicants ranges from graduate level college graduates, to those returning from international employment, housewives back to work, professionals who took hiatus for professional development or rejuvenation. good

As an employee, the small stints of unemployment provides chances to rejuvenate, participate in professional development trainings, leave one job and get hired at another on a higher pay scale etc.. good

Life as human beings evolves and revolves, nothing is static, and therefore our economic flow should mirror our natural flow. Frictional unemployment provides our economy with much needed time to increase, improve and refresh our workforce. Good all you are missing is that the economy needs a pool of frictional unemployed to permit economic growth without inflation. -3

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Chapter 16, Question 6 When a nations