prices, are affected by overall MSA unemployment, the distribution of unemployment among different groups, and national … prices and wages. MSA unemployment has strong effects on MSA wages and prices, but the distribution of unemployment among … different groups has weak effects on wages and prices. Using these estimates, simulations show that targeting high-unemployment …

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism … thus increases labor demand, which in turn reduces unemployment. We use the comparative-statistics predictions of the model …