Create a new account

It's simple, and free.

Jobless Claims

Mcauley, J. (2002, November 21). Big picture: What jobless claims say about labor market. Wall Street Journal Online. Retrieved from the Internet on 2002-11-21 at: http://online.wsj.com/article/0,4820,BT_CO_20021121_006518-search,00.html?

Section One: Economic Concepts Discussed in Article

Quite specifically, this article deals with the status of weekly claims for unemployment insurance in the United States economy. The concepts involved in the article include (1) the supply and demand for labor, as those factors have an impact on claims for unemployment insurance compensation, and (2) the lag effect in responses of employers for labor to changes in other macroeconomic measures. In this article, there is a report to the effect that claims for unemployment insurance dropped in the latest week reported, and that this drop in jobless claims was unanticipated. One implication of this outcome is that economic recovery in the United States may be somewhat more advanced than most economists and politicians believe that it is. Otherwise, the drop in claims for unemployment insurance would not have been a surprise to them. There can be, however, other explanations for the drop in jobless claims, including something as simple as a statistical fluke.

Section Two: Economic Theory Involved

The theory required to understand the change in claims for unemployment insurance involves labor supply and demand, and, more specifically, the functioning of the aggregate supply curve. Chart 1, which may be found on the following page, illustrates the functioning of aggregate supply curves and aggregate demand curves.

A stimulus to the economy (which, in this case, may be effects of the tax cut finally working its way through the economy, the effects of the several interest rate cuts finally working their way through the economy, or some combination of these and other factors, according to macroeconomic theory, causes the aggregate demand c...

Page 1 of 2 Next >

More on Jobless Claims...

Loading...
APA     MLA     Chicago
Jobless Claims. (1969, December 31). In LotsofEssays.com. Retrieved 02:11, March 29, 2024, from https://www.lotsofessays.com/viewpaper/1694888.html