ACC 1110 Lecture Notes - Lecture 8: Unemployment, Durable Good, Business Cycle
11 Feb 2018
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Causation: a first glance: causes of shocks: Unemployment: must be willing to work, actively seeking employment, as long as working at least 1 hour a week= employed, labour force= all employed or unemployed people, unemployment rate = (# of unemployed / labor force) x100. Lobster fisherman can only fish during lobster season: not costly because it can be anticipated. Economic cost of unemployment: gdp gap, okun(cid:495)s law, = actual gdp potential gdp economy(cid:495)s potential gdp, ex. Ue > women ue: educated (less educated people have higher ue) Inflation: rise in the general level of prices. Types of inflation basket in base year) x 100: (cpi current year cpi previous year / cpi previous year) x 100. )ncreases in prices due to excess demand (cid:523)beyond economy(cid:495)s: demand-pull inflation capacity, cost-push inflation, due to a rise in per-unit production costs, supply shocks (eg. oil)
