Macroeconomics Methodology for the Genuine Business Cycle

Forced Unemployment

Negative results are sometimes due to the inability to recognise the role involuntary

Ill-paying jobs are a possibility.

There was a significant amount of "forced" unemployment during the Great

Labor and capital layoffs during the Great Depression

was seen to be inefficient and unnecessary. The market was seen by many to

not a Pareto-efficient system; it's failing.

All severe recessions bring up a certain amount of involuntary joblessness.

When businesses can't make a profit, they cut back on production and staffing.

product; they are eager to increase output and sales at

the going rate in the market, supposing there is interest.

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