Economics 1022A/B Lecture Notes - Lecture 10: Labour Force Survey, Frictional Unemployment, Unemployment

• School: Western University
• Department: Economics
• Course: Economics 1022A/B
• Professor: Glen Copplestone

Document Summary

Types of unemployment (seasonal; frictional (normal growth in some areas and not in others; structural (from tech change or international competition); cyclical. Notion of full employment u rate (u*) = frictional + structural only (absence of cyclical unemployment) Definition of the consumer price index (cpi) Biases in the cpi (new goods; quality; substitution and outlet bias (cpi surveys do not monitor outlet substitutions use of discount stores and less use of variety stores) Definition of core inflation (inflation rate excluding fuel and food 8 of most volatile components) Unemployment results in: lost incomes and production: the loss of income is devastating for those who bear it. Unemployment (cid:271)e(cid:374)efits (cid:272)reate a safet(cid:455) (cid:374)et (cid:271)ut do(cid:374)"t full(cid:455) repla(cid:272)e lost (cid:449)ages, a(cid:374)d (cid:374)ot e(cid:448)er(cid:455)o(cid:374)e re(cid:272)ei(cid:448)es (cid:271)e(cid:374)efits. Manager loses his job when employer downsizes works as a taxi driver for a year now cant compete with new mba graduates gets paid lower wage then before lost some of his human capital.