The text presents the target rate of unemployment as being about 5 percent. William Vickrey, a Nobel Prize–winning economist, argued that the target unemployment rate should be seen as being between 1...

The text presents the target rate of unemployment as being about 5 percent. William Vickrey, a Nobel Prize–winning economist, argued that the target unemployment rate should be seen as being between 1 percent and 2 percent. Only an unemployment rate that low, he argued, would produce genuine full employment that guaranteed job openings for all those looking for work. Achieving a low unemployment rate would, according to Vickrey, bring about “a major reduction in the illness of poverty, homelessness, sickness, and crime.” a. What is the appropriate target unemployment rate? b. Explain your position. c. What policies would you recommend to counteract the human tragedy of unemployment?