With equilibrium GDP below potential (point E in
Figure 0), jobs will be difficult to find. The ranks of the
unemployed will exceed the number of people who are
jobless because of moving, changing occupations, and
000
Figure 0
The Elimination of a Recessionary Gap
so on. In the terminology of Chapter 0, the economy
will experience a considerable amount of cyclical unem
ployment. Businesses, by contrast, will have little trouble
finding workers, and their current employees will be
eager to hang on to their jobs.