ECON 203 Lecture Notes - Lecture 30: New Keynesian Economics, Money Supply, Aggregate Demand

• School: University of Calgary
• Department: Economics
• Course: ECON 203
• Professor: Peter Tracey

Document Summary

Labour force = (number of employed people) + (number of unemployed people) Eqn: lf = e + u (lf/lf) x 100 = (e/lf) x 100 + (u/lf) x 100. Labour force paricipaion = (# of people in lf/ adult populaion) x 100% Discouraged workers: they don"t have the necessary skills for the available jobs. Search unemployment: person looking for job, someone quiing etc. Deicient demand unemployment ~ y = c + i + g + nx. Natural unemployment rate: a measure of what economists judge to be the rate of unemployment to which the economy tends to return in the long run. The observed unemployment rate will difer from the natural unemployment rate due to the existence of cyclical unemployment. Cyclical unemployment unemployment related to business cycle. Four causes of unemployment: minimum wage law: un = nairu non-anicipated inlaionary rate of unemployment, union and collecive bargaining, eiciency wages, search unemployment.