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CU / Economics / ECO 2020 / How will you define frictional unemployment?

How will you define frictional unemployment?

How will you define frictional unemployment?

Description

School: University of Colorado
Department: Economics
Course: Principles of Macroeconomics
Professor: Murat iyugan
Term: Winter 2016
Tags:
Cost: 50
Name: STUDY GUIDE MIDTERM TWO FIXED
Description: FIXED
Uploaded: 04/11/2016
6 Pages 17 Views 8 Unlocks
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FINDING CHANGES OVER TIME Adult Population

Labor Force

Labor Force Participation Rate

Unemployment Rate

Cost of inflation

Real inflation Rate

Fisher Equation

Rule of 70

Future Value Equation

Present value equation

Initial rate of return

Marginal Propensity Consumption  (mpc)

Spending multiplier

­ Increase of spending (change  numerator to the increase)

Aggregate Planned Expenditure

NEW −OLD

OLD

Everyone18+¿

(nomatter if unemployeed∨employeed)

U +E=LF

U +E

Adult Population∗100

U

Labor Force∗100

P( t+1)−P(t)

P(t)∗100=π

P(t+1)=D (t )

D (t+1)

P(t )(1+r)

i=r+ π

70

%growth rate=years ¿ double

initial value∗(1+rate)number of years 

Futurevalue

(1+rate )number of years 

∑Return per year 

(1+rate)year 

Change∈Consumer Spending

Change∈Disposable Income

1

1−mpc


How will you define frictional unemployment?



Don't forget about the age old question of Galaxies are classified by type according to what property?

*** Whenever a reduction in planned spending, multiply by the spending multiplier and subtract that from the original equilibrium.***

­ With consumption function  factored in

­ Addition of G adds to Ip

Marginal Propensity Savings (mps) Labor Productivity

“PER CAPITA”

Y=AE p=C+Ip

Y=AE p=a+mpc (Y−T )+Ip

1−mpc

Y=Te∗∫(K ,H ,L ,N) 

The thing you want per capita (GDPusually ) Population∨¿ people


What is structural unemployment?



Y: Income/GDP

C: Consumer Spending

G: Government Spending

T: Tax

I: Investment

Ip: Planned Investment If you want to learn more check out When the p­value is used for hypothesis testing, we reject the null hypothesis if what?

Iu: Unplanned Investment

S: Savings

NX: Net Exports (Exports­Imports)

K: Physical Capital

H: Human Capital

N: Natural resources

L: Labor

mpc: marginal propensity consumption

­ Slope

a: Intercept of what C is when Y­T=0

Y = C + I + G + NX Finding GDP in an open economyu

Y – T  Disposable INcome

Y – T – C Private Savings

T – G Public Savings


What is cyclical unemployment?



G­ T Government Budget Balance

Y – C – G National Savings

(I – S) +NX = 0 National income Accounts

I = S ^^^^ in a closed economy

C = a +m mpc (Y­T) Consumption function

Frictional Unemployment: Natural cycle between workers and jobs

Structural Unemployment: Natural cycle with the business cycle: recessions and depressions  and such

Cyclical Unemployment: Short term

Facts:

­ GDP grows on average 1%­2% per year

­ It is a phenomenon that people that are less well off (poor) die earlier

Side Notes:

(I – S) > 0 Surplus

(I – S) < 0 Deficit

G>T  Budget Deficit Don't forget about the age old question of Financing budget refers to what?

G<T  Budget Surplus

EX>IM trade surplus, outflow

IM>EX trade deficit, inflow

FINDING CHANGES OVER TIME Adult Population

Labor Force

Labor Force Participation Rate

Unemployment Rate

Cost of inflation

Real inflation Rate

Fisher Equation

Rule of 70

Future Value Equation

Present value equation

Initial rate of return

Marginal Propensity Consumption  (mpc)

Spending multiplier

­ Increase of spending (change  numerator to the increase)

Aggregate Planned Expenditure

NEW −OLD

OLD

Everyone18+¿

(nomatter if unemployeed∨employeed)

U +E=LF

U +E

Adult Population∗100

U

Labor Force∗100

P( t+1)−P(t)

P(t)∗100=π

P(t+1)=D (t )

D (t+1)

P(t )(1+r)

i=r+ π

70

%growth rate=years ¿ double

initial value∗(1+rate)number of years 

Futurevalue

(1+rate )number of years 

∑Return per year 

(1+rate)year 

Change∈Consumer Spending

Change∈Disposable Income

1

1−mpc

Don't forget about the age old question of Oxygen nucleophiles means what?

*** Whenever a reduction in planned spending, multiply by the spending multiplier and subtract that from the original equilibrium.***

­ With consumption function  factored in

­ Addition of G adds to Ip

Marginal Propensity Savings (mps) Labor Productivity

“PER CAPITA”

Y=AE p=C+Ip

Y=AE p=a+mpc (Y−T )+Ip

1−mpc

Y=Te∗∫(K ,H ,L ,N) 

The thing you want per capita (GDPusually ) Population∨¿ people

We also discuss several other topics like Ionic bonds mean what?

Y: Income/GDP

C: Consumer Spending

G: Government Spending

T: Tax

I: Investment

Ip: Planned Investment

Iu: Unplanned Investment

S: Savings

NX: Net Exports (Exports­Imports)

K: Physical Capital

H: Human Capital

N: Natural resources

L: Labor

mpc: marginal propensity consumption

­ Slope

a: Intercept of what C is when Y­T=0

Y = C + I + G + NX Finding GDP in an open economyu If you want to learn more check out What is the meaning of skinner?

Y – T  Disposable INcome

Y – T – C Private Savings

T – G Public Savings

G­ T Government Budget Balance

Y – C – G National Savings

(I – S) +NX = 0 National income Accounts

I = S ^^^^ in a closed economy

C = a +m mpc (Y­T) Consumption function

Frictional Unemployment: Natural cycle between workers and jobs

Structural Unemployment: Natural cycle with the business cycle: recessions and depressions  and such

Cyclical Unemployment: Short term

Facts:

­ GDP grows on average 1%­2% per year

­ It is a phenomenon that people that are less well off (poor) die earlier

Side Notes:

(I – S) > 0 Surplus

(I – S) < 0 Deficit

G>T  Budget Deficit

G<T  Budget Surplus

EX>IM trade surplus, outflow

IM>EX trade deficit, inflow

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