E.5.6+Illustrate+and+explain+how+the+relationship+between+aggregate+supply+and+aggregate+demand+is+an+important+determinant+of+the+levels+of+unemployment+and+inflation+in+an+economy.



//**Focus Question: How does supply and demand impact unemployment and inflation?**//

 * Topics on the Page **
 * Aggregate Supply **
 * Aggregate Demand **
 * Unemployment **
 * Technological Unemployment **
 * ** Special Topic Page on Robotics in the Workplace **
 * Universal Basic Income **

- it also measures the amount of goods and services produced within the economy at a specific price.
 * Aggregate Supply**: Ability of a Country to produce goods or services in either a short or long period of time

There are two types of Aggregate Supply:
 * 1) Short Run Aggregate Supply
 * 2) Long Run Aggregate Supply

Short Run Aggregate Supply (shifts) Can be caused by:
 * changes in unit labor costs
 * commodity prices
 * Government taxation and subsidy


 * Aggregate Demand**: Total demand of goods and services at (x) which can stand for any given time

The Purpose of Aggregate Supply and Aggregate Demand is that it models the effects of economic changes on the economy as a whole


 * [|Click here] for a Khan Academy video on aggregate demand and supply
 * [|Click here] for a Khan Academy lesson on aggregate supply and demand

Unemployment
**Unemployment Rate from the Bureau of Labor Statistics**


 * Types of Unemployment**
 * **Structural**
 * Resulting from industrial reorganization, usually technological change
 * **Example**: Web-based advertising and services in newspaper industry eliminates jobs for journalists, printers and delivery personnel
 * **Frictional**
 * Resulting from workers in the process of moving from one job to another
 * **Example**: Construction workers moving to warmer states during the winter
 * **Cyclical**
 * Resulting from shifts in the economy such as business downturns or shifts in consumer demands
 * **Example**: Lost of jobs in the building trades during the 2008 Housing Crisis

[|Click here] to see unemployment broken down by age, race, and gender

[|Click here] for an article on women and unemployment

[|Click here] for a timeline of the unemployment rate in the US

Technological Unemployment

 * [[image:rotating gif.gif width="43" height="43" link="E.5.3 Analyze the impact of events in United States history, such as wars and technological developments, on business cycles."]]See Economics 5.3 for more on Robotics in the Workplace**

Technological Unemployment and the Future of Work, Wall Street Journal (November 6, 2015)
 * Agricultural workers declined from 41% of population in 1900 to 2% in 2000
 * What will happen to manufacturing and other jobs due to automation?

[[image:dollarsign.png width="40" height="40"]]

 * Five Reasons Why A Basic Income Won't Solve Technological Unemployment, Social Europe Blog (February 4, 2016)

Universal Basic Income

 * Is Universal Basic Income the Answer to an Automated Future, Big Ideas and Innovation Blog (December 12, 2016)
 * 47 percent of jobs are at risk of being automated by machine learning, Robotics, 3D printing and Artificial Intelligence resulting in technological unemployment
 * Universal Basic Income, also called guaranteed minimum income, is one solution
 * Experiments underway in Finland, Netherlands, and India

Works Cited: http://tutor2u.net/economics/revision-notes/as-macro-aggregate-supply.html