by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are the Issues with Measuring Unemployment? There are always complications in measuring the number of unemployed. For example, what about people who do not have jobs and would be available to work, but are discouraged by the lack of available jobs in their area...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Establishment Payroll Survey? When the unemployment report comes out each month, the Bureau of Labor Statistics (BLS) also reports on the number of jobs created—which comes from the establishment payroll survey. The payroll survey is based on a survey of...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the US Labor Force? The US Labor force is the number of employed plus the unemployed. What is Employed and Unemployed? Employed: currently working for pay Unemployed: Out of work and actively looking for a job Should we count everyone without a job as...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How can Fiscal Policy Can Affect Technology Development? Research and development (R&D) efforts are the lifeblood of new technology. Fiscal policy can encourage R&D using either direct spending or tax policy. Government could spend more on the R&D that it...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Public Investment in Human Capital? In most countries, the government plays a large role in society’s investment in human capital through the education system. A highly educated and skilled workforce contributes to a higher rate of economic growth. For...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Effect of Government Investment in Physical Capital? Government can invest in physical capital directly: roads and bridges; water supply and sewers; seaports and airports; schools and hospitals; plants that generate electricity, like hydroelectric dams or...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How Does Government Borrowing Affect Interest Rates in Financial Markets? Assume that government borrowing of substantial amounts will have an effect on the quantity of private investment. How will this affect interest rates in financial markets? In the financial...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Crowding Out of Physical Capital Investment? A larger budget deficit will increase demand for financial capital. If private saving and the trade balance remain the same, then less financial capital will be available for private investment in physical capital....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Fiscal Policy Affect Investment and Economic Growth? The underpinnings of economic growth are investments in physical capital, human capital, and technology, all set in an economic environment where firms and individuals can react to the incentives provided...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
How does Government Borrowing Affect Private Savings? A change in government budgets may impact private saving. Imagine that people watch government budgets and adjust their savings accordingly. For example, whenever the government runs a budget deficit, people might...
