ECN 204 Lecture 3: Macroeconomics lecture 3

• School: Ryerson University
• Department: Economics
• Course: ECN 204
• Professor: Bolor Narankhuu

Document Summary

Nobody knows how long each period will last. Durable goods affected most: capital goods (building, machinery, equipment, consumer durables (cars, furniture, appliances) Nondurable consumer goods (affected less: services (financial, communication, transportation, food, shelter, clothing. Unemployment rate = (# of unemployed / labour force) x 100. The unemployment rate is the percentage of the labour force that is unemployed. How the unemployment rate is understated: part time employment stats, discouraged workers. Frictional unemployment: caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs. Structural unemployment: caused by changes over time in consumer demand and in technology after the (cid:862)stru(cid:272)ture(cid:863) of the total de(cid:373)a(cid:374)d for la(cid:271)our, (cid:271)oth o(cid:272)(cid:272)upatio(cid:374)all(cid:455) a(cid:374)d geographically. Cyclical unemployment: caused by a decline in total spending (or by insufficient aggregate demand) Seasonal unemployment: caused by seasonal factors. At the nru, the economy is at potential gdp. Occurs when there is no cyclical unemployment.