s at a constant pace. Unemployment has dropped to record lows in some of these states. This risky act may spell disaster.From a macroeconomic perspective, it is important to note that in the major industrial countries, low unemployment usually creates inflationary pressures. However, throughout the past few years of economic expansion in the United States, prices have held steady despite low unemployment. Unemployment Ever think about what happens to people when they loose their job? Where do they go? What do they do? How do they provide for their family? These are everyday facts about unemployment, one of the largest measuring sticks for an economy. Unemployment is an important facet of every economy. Although it may seem logical to keep unemployment rates as low as possible, that is not the case. If unemployment rates drop to far down, this may lead to inflation. The reason being that if there is a low unemployment rate then there will be a shortage of skilled workers, thus pushing employers to raise wages and benefits which will in turn raise prices. Over the years, there have been really high highs and really low lows when it comes to unemployment. Currently the unemployment rate is at it's lowest in twenty five years. The booming economy has helped drop the unemployment rate to below four percent, which is the lowest since 1970. These low rates have been caused by many factors. Some of which include growth in the industrial output of the United States, a booming stock market, and some natural elements such as recent hurricanes. In order to asses the affects of these different factors on the unemployment rates, economists must have some type of system to estimate the unemployment rate. One major system that...
