c. Imagine that there are innovations in home electronics. Assume that the innovations do not affect the size of the labour force or labour productivity, but they do make unemployment less unpleasant. Assume also that the innovations do not affect firms’ profit margins. Now, using the figure above, explain what happens to unemployment.

c. Imagine that there are innovations in home electronics. Assume that the innovations do not affect the size of the labour force or labour productivity, but they do make unemployment less unpleasant. Assume also that the innovations do not affect firms’ profit margins. Now, using the figure above, explain what happens to unemployment.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 11RQ: If you an? out of school but working part time, are you considered employed or unemployed in U.S....

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