Participate in a discussion with your classmates regarding natural unemployment. Review the “EYE on Your Life” caption titled, Natural Unemployment, on page 207 in the textbook. Now that we have learned that potential GDP is the value of real GDP when all the economy’s factors of production – labor, capital, land, and entrepreneurial ability – are fully employed, discuss how these factors render natural unemployment as productive when considering potential GDP. Please apply the production function and labor market concepts as explained in the textbook when sharing your discussion.
Natural Unemployment – Review the EYE on Your Life
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