Business Administration - Accounting & Financial Planning ECN502 Lecture Notes - Lecture 6: Discouraged Worker, Frictional Unemployment, Business Cycle
20 Dec 2016
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Frictional unemployment: unemployment that results from people moving between jobs or entering/re-entering the labor force. Seasonal unemployment: unemployment cased by seasonal variations. Structural unemployment: unemployment caused by a mismatch between the types of skill that unemployed workers possess and the types of workers that employers would like to hire. Cyclical unemployment: unemployment that arises because of declines aggregate expenditures and aggregate output, during a recession, low business cycle, reason is a lack of demand. How to measure unemployment: labor force utilization, unemployment rate % = number of people unemployed/labor force x 100. Discouraged worker: workers that stopped the job search, unemployment. Workers in part time jobs cannot find full time employment. Output gap/input gap: difference between potential output and the actual output, potential output vs actual output. Potential gdo/full employment: highest level of gdp over a term. Actual gdp: gdo produced in a given year. Inflation: a sustained increase in the average level of prices.
