The Bureau of Labor Statistics (BLS) just released data for the month of June showing that while the economy added 213,000 jobs, the unemployment rate ticked up by 0.2% from May to 4%. Wages also increased slightly to 2.7% on a year to date basis.
How should one interpret these data? From a theoretical perspective these should not create any worries as the natural rate of unemployment - the rate of unemployment believed to be sustainable in the long run due to unavoidable s
The Unemployment rate for May just dropped to a historically low 3.8%, its lowest since 1969! This is great news, or is it? The business cycle phenomenon is an interesting short run economic proposition that posits that modern economies go through bouts of growth and stagnation explainable by alternative theories. Real GDP grows positively over some time period hits a peak in economic activity and then starts to experience negative growth, hits a trough, and repeats. What is