CHAPTER 7 OF MACROECONOMICS
CHAPTER 7 OF MACROECONOMICS 2105 025
Popular in Macroeconomics
verified elite notetaker
Popular in Economcs
This 2 page Class Notes was uploaded by Christina Smith on Wednesday February 10, 2016. The Class Notes belongs to 2105 025 at Georgia State University taught by Mr. Apperson in Winter 2016. Since its upload, it has received 38 views. For similar materials see Macroeconomics in Economcs at Georgia State University.
Reviews for CHAPTER 7 OF MACROECONOMICS
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: 02/10/16
CHAPTER 7 RD 3 WEEK UNEMPLOYMENT: Part of the population looking for a job but doesn’t have one/ actively looking Employed: Part and full time/ doesn’t include children Labor Force: All the members of a particular organization or population, who are able to work, viewed collectively. Working part time but want to work full time (underemployed) (everything that is considered as labor force) Unemployment Rate: The percentage of the labor force that is unemployed. Creative Destruction: Occurs when the introduction of new products and technologies leads to the end of other industries Structural Unemployment: Is unemployment caused by changes in the industrial makeup of the economy. Frictional Unemployment: Caused by delays in matching available jobs and workers Unemployment Insurance: Government program that reduces the hardship of joblessness by guaranteeing that unemployed workers receive a percentage of their former Income while unemployed. Cyclical Unemployment: Unemployment caused by economic downturns. Natural Rate of Unemployment: Typical Rate of unemployment that occurs when the economy is growing normally. Full Employment Output: Output level produced in an economy when the unemployment rate is equal to its natural rate. Labor Force: Includes people who are already employed or actively seeking. Discouraged Workers: Those who are not working, have looked for a job in the past 12 months and are willing to work, but have not sought employment in the past 4 weeks Underemployed Workers: Those who have parttime jobs but who would prefer to work fulltime. Labor Force Participation Rate: The percentage of the population that is in the labor force. To find growth rate of unemployment: = unemployed/ employed + unemployed (labor force) X 100 = Endingbeginning/ beginning = # X 100 3 TYPES OF UNEMPLOYMENT Structural: an economy has a mix match between people looking for work (skills) and actual necessities from the company People looking for a job based on the skills that they have “ Creative Destruction”: new companies are made and others are destroyed Frictional: time it takes for someone to get matched for the job Cyclical: when someone is looking for a job but there are changes with the business cycle and varies on how the economy is doing. Discouraged Worker: In the past they applied for jobs but not anymore/ not in labor force or unemployed. Natural rate of employment: rate of both Structural and frictional SHORTCOMINGS OF UNEMPLOYMENT RATE Recovery happens People reenter the labor force Unemployment rate can increase
Are you sure you want to buy this material for
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'