Macroeconomics Essay Example | Topics and Well Written Essays - 2000 words - 1

Macropolitical economy - Essay ExampleThe paper concludes with the role of various entities in arrogant voluntary unemployment.Classical economists viewed jade market similar to other markets based on supply and acquire in that price would adjust to ensure that quantity leaseed equaled quantity supplied. However, labour market differs in context price and quantity of supply and demand. In case of labour market, effective supply of labour is a challenge as it depends on factors such as time, skills, wages and availability. A rise in general wages may not result in more supply of labour on the contrary, may lead to less supply of labour or no change in labour. Within the general labour market, particular segments are assumed to be subject to more normal rules of supply and demand as workers are likely to change jobs due to various reasons, particularly in response to differing wage rates leading to unemployment for certain period of time.Unemployment is one of the serious prob lems that can affect people at present or indirectly, in any nation. Every country faces this problem however, it widely varies in proportion. Labour economics is one of the important sections of market economics, besides financial market and product market, and is studied at small and macro levels. While, microeconomics of labour market deal with role of individuals and individual firms in the labour market, macroeconomics looks at the interrelations of labour market, the goods market, the money market, and the foreign trade market. Understanding of labour market is the centre feature of any macroeconomic theory. In the serious music view of the excavate market, all unemployment is voluntary. When the economy goes into a recession and the demand for labor falls, the wage rate will decline and people will opt out of the labor force. However, the classical theory could not explain situations the 1930 recession thoroughly.Economics has various definitions of voluntary and involunta ry