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The Real Economy in the Long Run, Basic tools of finacing, Interest rate…

- - - - fostering education
      - promoting good health,
      - Maintain property rights
  - - - 1.individuals
- - - - technological knowledge
      - diminishing returns,
        
        7 catch-up effect,
      - Policies Should be aimed at
        
        encouragingsaving and investment,
        
        encouraging investment from abroad,
        
        ,
        
        allowing free trade,
        
        political stability,
        
        promoting the research & development of new technologies.
      - human capital
      - physical capital
  - - - 1.Identifying unemployment
        
        Uemployed - avalible for work but can not find 4 weeks
        
        Labor force those employed and unemployed but able to work.
      - Job Search
        
        Frictional unemployment- time to find the right job-
        
        Always will be their-
        
        technology and open markets lowers this
        
        unemployment insurance people believe makes it worse
      - 3.minimum wage laws
        
        Only help the lowest rank of employees
      - unions
        
        Better working representative
        
        Can cause job loss for those not in the union
      - theory of efficiency wages
        
        turn over
        
        quality
        
        problems in undeveloped countires
        
        health
        
        Effort
- - - - Increase taxes and interstate rate
      - Crowding