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ECON 1020 (99)
Lecture 47

ECON 1020 Lecture 47: Lecture 47

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ECON 1020
Ryan A.Compton

o982 Cyclical unemployment results from insufficient demand for goods and services Very serious problem when it occurs 4. Seasonal Unemployment: Seasonal unemployment: unemployment caused by seasonal factors Definition of Full Employment: Full employment is also known as the natural rate of unemployment (NRU) NOT zero unemployment Full employment is less than 100 employment of the labour force Economy is fully employed when there is no cyclical unemployment and the economy is achieving its potential output Not automatic (that economy with be at or move toward the natural rate) Varies over time (natural rate) Economists describe the unemployment rate that is consistent with full employment as the fullemployment rate of unemployment, or the natural rate of unemployment (NRU), sometimes referred to as the noninflationary rate of unemployment Natural rate of unemployment (NRU): the unemployment rate the occurs when no cyclical unemployment exists and the economy is achieving its potential output At the NRU, the economy is said to be producing its noninflationary potential GDP Potential GDP: the real output an economy can produce when it fully employs its available resources This is the real GDP that the economy would produce at full employment In term so the production possibilities curve, potential GDP means the economy would be operating on the curve When the economy Is operating at NRU, the number of job seekers equals the number of job vacancies Economic Costs of Unemployment:
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