Let me put it this way, just for fun.
A variable e := production efficient, is changed from a lower value to a higher, causing a closed economic system to shift into a equilibrium with high jobless rate.
In order to bring the system to a new equilibrium with low jobless rate we can change e back to it's previous lower value, but that sounds stupid.
We can also change work time per week per person to a lower value because, assume employers prefer full time employees, number of man needed = total work hour*man needed / total hours per man. But this is not really a must, we can also start constructing the colony on moon.
The fun point is the resemblance of ideas in economics to that in thermodynamics.
The assumption that a market, if left untouched, will work it's way to the highest efficiency in production and distribution is a statement that there exists one and only one state of equilibrium a given economy system will approach. This is what the second law of thermodynamics says about a closed system and that state of equilibrium is said to have the highest entropy.
A variable e := production efficient, is changed from a lower value to a higher, causing a closed economic system to shift into a equilibrium with high jobless rate.
In order to bring the system to a new equilibrium with low jobless rate we can change e back to it's previous lower value, but that sounds stupid.
We can also change work time per week per person to a lower value because, assume employers prefer full time employees, number of man needed = total work hour*man needed / total hours per man. But this is not really a must, we can also start constructing the colony on moon.
The fun point is the resemblance of ideas in economics to that in thermodynamics.
The assumption that a market, if left untouched, will work it's way to the highest efficiency in production and distribution is a statement that there exists one and only one state of equilibrium a given economy system will approach. This is what the second law of thermodynamics says about a closed system and that state of equilibrium is said to have the highest entropy.
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