New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Macroeconomics 4/06/2016-4/11/2016

by: amber weiss

Macroeconomics 4/06/2016-4/11/2016 Economics 111

amber weiss
GPA 3.7

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

this is what we covered in class on the following dates: 4/06/2016 4/08/2016 04/11/2016
Mary Anne Pettit
Money and Banking
75 ?




Popular in Macroeconomics

Popular in Economcs

This 4 page Bundle was uploaded by amber weiss on Monday April 18, 2016. The Bundle belongs to Economics 111 at Southern Illinois University Edwardsville taught by Mary Anne Pettit in Spring 2016. Since its upload, it has received 9 views. For similar materials see Macroeconomics in Economcs at Southern Illinois University Edwardsville.


Reviews for Macroeconomics 4/06/2016-4/11/2016


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 04/18/16
Macroeconomics 04/06/2016 Unemployment, Education and Earnings  Calculating the National Unemployment Rate {entire macroeconomy} - U.S Bureau of Labor Stattistics (BLS) surveys 60,000 households monthly - Asks a series of questions to all - Based on responses of individuals in the household are categories as: 1. Employed  Any work for pay during the survey week or on vacation, sick, bad weather, strike, etc… 2. Unemployed  Did NOT work for pay and is actively looking for work in last 4 weeks 3. Not in labor force  Did not work for pay and is NOT actively looking for work - What is the labor force?  Employed + unemployed  Students, stay at home parents, senior citizens/retired, disability, non-profit organizations, etc….  National unemployment rate - Data from household survery utilized - Unemployment rate: the percentage of labor force defined as unemployed - Current rate: 5.0% (march 2016) 5.9%** (September 2014) st - **BIG DEAL: landmark-for economy; 1 time below 6% since July 2008  How low should unemployment be? Should we aim for “0” unemployment? - Most think full-employment unemployment rate is about 5-6% - Another name for full-employment unemployment is the National Rate of Unemployment - What is so natural about it?  We have to look at the types of unemployment…  Types of unemployment: 1) Frictional 2) Structural 3) Cyclical Macroeconomics 04/08/2016  Types of unemployment 1) Frictional unemployment (movement)  Those just entering the labor force or changing jobs  Weren’t in labor force= stay at home parents, etc…  Start at NOT IN LABOR FORCE, then begin looking = unemployed  Gives idea of Dynamic Growing Economy 2) Structural Unemployment  Those without marketable skills or in a mismatch between skills and openings  Without marketable skills= high school dropouts, gaps from prison sentences, drug issues… They are going to struggle even when the economy is booming  Mismatch= because there are no job openings or demand for their skill set  Mobility is very important 3) Cyclical Unemployment  Those unemployed in a recession  Example) factory closes a branch, shifts, etc…  Natural unemployment Rate - AKA FULL-EMPLOYMENT UNEMPLOYMENT - Frictional + Structural = natural rate - So, full employment traditionally thought to occur at unemployment rate of 6% or less - Anything over is supposedly Cyclical- The Great Recession and Aftermath - (December 2007- July 2009) 6.5% (oct. 2008) 10.0% (oct. 2009) 9.5% (oct. 2010) 8.8% (oct. 2011) 7.8% (oct. 2012) 7.2% (oct. 2013) - Going down: fall of 2014 - For exam, just know the trend  Why did unemployment remain high? Cyclical or Structural? - Extending unemployment benefits prolong search- keep looking because you can - Not like the older days when didn’t have many choices or options, you took whatever came up because needed to support the family - Structural changes for some industries means employment in those industries will never reach pre-recession levels again - Structurally unemployed requires education, training, motivation and mobility - Participation rates fall- out of labor force Macroeconomics 04/11/2016  Selected Historical Rates: - 1982: 9.7 (high 10.8) -2002: 5.8 - 1990: 5.6 -2003: 6.0 (high 6.3) - 1991: 6.8 -2004: 5.5 - 1992: 7.5 (high 7.8) -2005: 5.1 - 1993: 6.9 -2006: 4.6 - 1999: 4.2 -2007: 4.6 - 2000: 4.0 -2008 6.0 (high 7.2) - 2001: 4.8 -2009 10.1 (high) - JUST KNOW THE TREND  Issues with Unemployment Measure 1. Part-time work 2. Discouraged workers  Those we think want work but have given up looking  Not in abor force  We know when economy is good = fewer  We know when economy is bad = more 3. Rate is national, over all figure - Detailed look at the rate is available by…  By education attainment  By geographic data  By gender  Selected Unemployment Rates - Unemployment rates: education matters—A LOT - If the national rate is 5.0% -- march 2016 - Rate for college graduates: 2.5%  Bachelor: 2.8  Master: 2.2  Professional: 1.8  Doctoral: 1.0  Unemployment by Educational Attainment- 2016 - Rate for associates degree: 4.1% - Occupational program: 3.9% - Academic program: 4.2% - Rate for high school graduates (no college) : 5.8% - Rate for high school dropouts (age 25+): 10.1% - Rate for teens (16-19) : 17.5%  Geography and Unemployment - Where you live matters too - States with HIGHEST unemployment: 1) Alaska: 6.6 2) West Virginia: 6.5 3) Mississippi: 6.5 4) District of Columbia: 6.5 - States with LOWEST unemployment: 1) New Hampshire: 2.7 2) South Dakota: 2.7 3) North Dakota: 2.9 4) Colorado: 3.0 5) Nebraska: 3.0 6) Hawaii: 3.1  Who is Rich? - Recall: wealth = networth – value of stuff-debt [assets-liabilty] - How do we define being rich? - What household income does it take in the U.S today to be rich?  Households vary: Dependents? How many incomes? - What is the minimum household income it will take to be considered the top 20%?  Who’s rich, not rich and just average - $104,087+ (top 20%) - $64,554 – 104,086 (2ndfrom top) - $39,736 – 64,553 (Middle 20%) - $51,017 (Middle/Median) - $20,593 – 39,735 (2nd20%) - $20,592 or less (Lowest 20%)


Buy Material

Are you sure you want to buy this material for

75 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Amaris Trozzo George Washington University

"I made $350 in just two days after posting my first study guide."

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.