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

Chapter 6 Macro

by: Jessica D'Aniello

Chapter 6 Macro Econ 105

Marketplace > Pace University > Economcs > Econ 105 > Chapter 6 Macro
Jessica D'Aniello
Macroeconomics 105
Prof Weinstock

Almost Ready


These notes were just uploaded, and will be ready to view shortly.

Purchase these notes here, or revisit this page.

Either way, we'll remind you when they're ready :)

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

Macroeconomics 105
Prof Weinstock
Class Notes
25 ?




Popular in Macroeconomics 105

Popular in Economcs

This 5 page Class Notes was uploaded by Jessica D'Aniello on Thursday October 15, 2015. The Class Notes belongs to Econ 105 at Pace University taught by Prof Weinstock in Fall 2015. Since its upload, it has received 10 views. For similar materials see Macroeconomics 105 in Economcs at Pace University.

Similar to Econ 105 at Pace


Reviews for Chapter 6 Macro


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: 10/15/15
Chapter 6 Unemployment and In ation individuals who do not currently have a job but are actively the total number of workers both the employed and the unemployed Labor force employed unemployed the percentage of the labor force that is employed Unemployment rate unemployedlabor force x 100 If the unemployment rate is 5 does that mean that 5 of people don t have a job False because it s only the 5 who are unemployed AND looking for a job the percentage of the population over 16 years of age that is in the labor force Labor force participation rate labor force population 16 years and older x 100 if you become unemployed for too long there s a danger that you can get cut off People can t get back into the groove of working overtime Do problems in the public schools in this country create more structural frictional or cyclical unemployment Shortterm basis26 weeks 26 weeks or longer is long term unemployment Why is y equal to gap Percentage change How is unemployment de ned and measure Employed 142034000 Unemployed 12673000 Unemployed divided by employed One more formula BUSINESS CYCLES OF THE ECONOMY other countries get the bene t of there hard work and labor ex countries with high unemployment rate who cant get a job leave the country to work Examining Unemployment Labor force participation by women In 1948 the labor force participation rate for women 20 years and older workers who left the labor force because they could not nd jobs Categories of unemployment the component of employment attributed to seasonal factors unemployment that occurs during uctuations in real GDP a normal course of business cycle productivity in any country unemployment that occurs with the normal workings of the economy such as workings of the economy such as workers taking time to search for suitable jobs and rms taking time to search for quali ed employees unemployment that occurs when there is a mismatch of skills and jobs what you can actually do in the work place how you act and your ethic Interaction skills no jobs in NewJersey look for jobs elsewhere The natural rate of unemployment the level of unemployment at which there is no cyclical unemployment It consists of only frictional and structural unemployment the level of unemployment that occurs when the unemployment rate is at the natural rate a price index that measures the cost of a xed basket of goods chosen to represent the consumption pattern of a typical consumer The CPI index for a given year say year K is de ned as CPI in year K cost of basket in year K cost of basket in base year x 100 What is in ation how much you have after taxes The change in the price of ex ice cream and they weight it on the average American income so if rent goes up 5 and ice cream goes up 5 they are going to spend the money on rent Take basket of goods and services like 400 and divide by the base year of goods and services and times by 100 much like real and nominal gdp de ator Changes depending on where you live PCE personal consumption expenditure index the federal reserves preferred measure of in ation they still use the CPI though and the GDP de ator and the PPI producers price indexfuel cost of paper etc the percentage increase change in the price level average level of all prices in the economy Orange juice prices going up is not in ation because in ation is the change of the average price not the actual price Total Everything Core everything minus food and oil natural gas diesel energy prices Automatic increases in wages or other payments that are tied to the CPI CPI plus 3 so you get a ve percent rise Cell phones were introduced in 1983 but included in the CPI until 1998 when the in ation rate is negative prices are falling make your money worth more a lot of in ation in ation rate goes double digit 1015 percent is bad when in ation slows down above 0 Our in ation is 310 of 1 Our core in ation is 14 Why is our in ation so low Oil has fallen more than 50 they have dropped because fracking because quotglobal warmingquot and also natural resources are very expensive and limited and the US dollar is very strong which mean when we buy imports we buy more of it cause its cheaper so we have a lot of goods We care that in ation is running low because it could become de ation de ation is bad because there is not enough spending that s why prices are falling and companies make much less pro ts so they re people which raises the unemployment rate And absolute poverty People with jobs will complain that there wages never go up in ation that is anticipated in ation that is not expected


Buy Material

Are you sure you want to buy this material for

25 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."

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on 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."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

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.