Unemployment Problem
Traditionally equilibrium unemployment includes both structural and frictional unemployment.
1. Some people believe that the solution to the "unemployment problem" is to shorten the work week. Do you believe this would work?
2. What role (if any) do you believe the American worker played in our current unemployment crisis? Why?
3. With a labor market that is willing to take a reduction in wages and becoming more willing to relocate, where do you see opportunities for those looking to become employed?
4. Are there hidden costs to unemployment?
5. Why might there be a "disincentive" to work for some people?