Edmund Phelps pioneered an early formal study of this concept called search theory.
Edmund Phelps pioneered an early formal study of this concept called search theory. Marx referred to this quantity as a "reserve army" and the Beveridge Curve, which compares this quantity to the vacancy rate and expands outward as this quantity increases, describes its frictional type. This quantity's effect on GDP is described by Okun's Law, while it is related to inflationary explanations by the NAIRU measure, which replaced the Phillips curve. Milton Friedman theorized about the "natural" rate of this concept, measures of which sometimes do not include "discouraged" individuals. For 10 points, identify this quantity that includes structural, frictional, and seasonal varieties, a measure of workers looking for work.
Edmund Phelps pioneered an early formal study of this concept called search theory.
Unemployment