economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and … explain movements of unemployment and underemployment in opposite directions. Finally, we show that uctuations in the total …

economy permanently operates below capacity due to both structural unemployment and underemployment. The latter is a direct … demand and supply shocks are opposite to those of the standard case and result in a co-movement of unemployment and … explain movements of unemployment and underemployment in opposite directions. Finally, we show that fluctuations in the total …

capable of dealing with both full employment and secular unemployment. The model is then utilized to examine the effect of a … expense of the foreign country. These results however are reversed in the presence of unemployment in both countries. We also …

We examine the effect of immigration on the host country in the dynamic model that can deal with secular unemployment …. Immigration has contrasting effects, depending on the economic state of the host country. If there is unemployment, immigration … worsens unemployment and decreases consumption by native residents whereas if full employment prevails, immigration has the …