MGEA06H3 Lecture Notes - Lecture 4: National Research Universal Reactor, Frictional Unemployment, Structural Unemployment

128 views6 pages
selahanna2005 and 40086 others unlocked
MGEA06H3 Full Course Notes
2
MGEA06H3 Full Course Notes
Verified Note
2 documents

Document Summary

The natural rate of unemployment (nru: the unemployment rate that is normal to the economy, the e(cid:272)o(cid:374)o(cid:373)y"s u(cid:374)e(cid:373)ploy(cid:373)e(cid:374)t rate in the long run. It is the unemployment rate that will not put any pressure on the inflation rate. Natural unemployment = frictional unemployment + structural unemployment. Actual unemployment = natural unemployment (constant in lr) + cyclical unemployment (0 in. Changes in the natural rate of unemployment: ca(cid:374)ada"s nru flu(cid:272)tuated o(cid:448)er ti(cid:373)e. it rose fro(cid:373) 4% i(cid:374) the (cid:1005)96(cid:1004)s to a(cid:271)out (cid:1005)(cid:1004)% i(cid:374) the late. 1980s and the mid-1990s, and then it felt to 6% from the late 1990s to the mid-2000s. Changes in labor force characteristics: as shown in the data, young workers tend to have higher unemployment rate, the nru tends to be higher if a large portion of the labor force is characterized by young workers. It is because they are inexperienced and may not stay in the same job for a long period => frictional unemployment .

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions