Buy custom To what extent does a policy of full employment conflicts with other government objectives?
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Business
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| Number of pages / Number of words: |
2 / 376 |
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To attain full employment the government could seek to increased aggregate demand. This increases real GDP and reduces cyclical unemployment; however as the economy gets close to full capacity it may cause inflationary pressures; causing inflation to be above target. Yet increases in the demand for labour continues to grow and employers must pay existing workers overtime and entice non-labor force participants into the labor force by offering them higher wages...
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To attain full employment the government could seek to increased aggregate demand. This increases real GDP and reduces cyclical unemployment; however as the economy gets close to full capacity it may cause inflationary pressures; causing inflation to be above target. Yet increases in the demand for labour continues to grow and employers must pay existing workers overtime and entice non-labor force participants into the labor force by offering them higher wages...
Essay fragment
General points of the essay
To what extent does a policy of full employment conflicts with other government objectives?
Imagine that you were called in by the government to advice on how it should use macroeconomic policy to manage the cyclical fluctuations in the economy. What advice would you give and how would you justify the advice?
How has the level of employment/unemployment and national minimum wage legislation impacted on the economy as a whole and how will this effect the economy in the years to come?
Government vs employment Rights
What actions might a government take in order to reduce the rate of inflation in the economy?
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