Economic Language

[marbs]

Anyone have notes on this? Apparantly when I write answers I don't use the appropriate 'eco talk'

Has anyone had trouble with this, and improved.

Thanks

[Collin Li]

I used to skip a lot of the explanation because I thought things were commonsense. Here's an example of how I explained a property of the Phillips curve (the question was why does the rate of wage change increase much faster at low unemployment, compared to high unemployment):

Assuming a fixed stock of labour, in periods of low unemployment, there is less competition in the labour market, due to a smaller stock of unemployed workers seeking to become employed, which means that there is more bargaining power for the worker. Hence, workers have a greater ability to influence wages, and the rate of change on wages will be higher.

On the other hand, during periods of high unemployment, there is more competition in the labour market, due to a larger stock of unemployed workers seeking to become employed, which means that there is less bargaining power for the worker. Hence, workers will have a hindered ability to influence wages, and the rate of change on wages will be lower.

Before I got used to explaining things so slowly (thoroughly is a better word, I guess ), I would have had a highly abbreviated dot-point version of this explanation.