Unemployment solved in economic growth models, stabilizing job market fluctuations.
Unemployment is often not properly accounted for in Post Keynesian growth models, leading to unstable unemployment rates. By introducing a Kaldor-Hicks technological progress function, the Harrod-Solow knife-edge problem can be resolved. In various PK growth models, the warranted rate of growth dominates, except in a modified neo-Kaleckian model where both warranted and natural rate forces impact steady state growth.