Please reply to theses two class mates! Thank you!

When replying to other students' postings, avoid simple replies like "I agree..." or simply "yes or no", without explaining reasoning.Tell why hold a certain opinion or why agree or disagree with the points in the posting. Try to make dialogue easy to follow. If you are replying to a comment, include the comment to clarify the point. If asked a question, please respond.

discussion board

1. productivity and GDP Growth: I feel like since the unemployment rate is low than the productivity and GDP growth would be at a all time high in the economy. SInce the productivity is high it also means that their would be less unemployment in our economy. Wages and Wage Growth: I feel like wages and wage growth would be high becuase the employers would increase wages to hold on to its employees so they don't quit. Consumer Confidence: Since the unemployment rate is low consumers confidence is at a all time high becuase they know jobs will be paying more than usual. Labor Supply and Demand: I feel like since the unemployment is causing employers to pay more that means labor supply would be at a all time high because of the wages that have been increased due to less people working. Entitlement Spending: I feel like since unemployment is low then entitlement spending from the government might be low as well becuase there would be less people to give benefits out to. 2. Productivity and GDP Growth: Due to low unemployment rates productivity and GDP growth would be affected becuase their would be lost productivity and GDP growth. Employee Loyalty: I feel like if unemployment rates are low then employee loyalty would not be their they could find new jobs easily and not be loyal as normal rates Potential Inflation: SInce the demand would be higher than normal the potential inflation would be high due to the amount of demand that will be demanded. Labor Supply and Demand: Due to unemployment the supply would be hgih because of the higher wages that companies are giving, but on the other hand demand will be low for labor in the market.

Discussion board 1

A.Unemployment rates this low benefit the economy in terms of the following: 1. Productivity and GDP growth: Low unemployment rates can lead to higher productivity as firms can invest in new technologies and processes when they have a competitivelabor market. This, in turn, can lead to higher GDP growth as firms can produce more output with the same amount of inputs. 2. Wages and wage growth: Low unemployment rates can lead to higher wages as firms compete for workers. This can also lead to higher wage growth as firms raise wages to attract and retain workers. 3. Consumer confidence: Low unemployment rates can lead to higher consumer confidence as people feel more confident about their job prospects and their ability to find a job. 4. Labor supply & demand: Low unemployment rates can lead to a competitivelabor market, which can lead to higher wages and higher productivity. 5. Entitlement spending: Low unemployment rates can lead to lower entitlement spending as people are more likely to be employed and thus less likely to need government assistance. B.Unemployment rates this low may also damage the economy in terms of the following: 1. Productivity and GDP growth: Low unemployment rates can lead to inflationary pressures as firms compete for workers. This can lead to higher wages, which can lead to higher production costs and lower productivity. 2. Employee loyalty: Low unemployment rates can lead to higher employee turnover as workers are more likely to switch jobs when they have more options. This can lead to higher training and recruitment costs for firms. 3. Potential inflation: Low unemployment rates can lead to inflationary pressures as firms compete for workers. This can lead to higher prices for goods and services, which can lead to lower purchasing power for consumers. 4. Labor supply & demand: Low unemployment rates can lead to a tighter labor market, which can lead to higher wages. This can lead to firms hiring less labor and opting for automation instead, which can lead to unemployment.