ECON-2000 Lecture Notes - Lecture 10: National Research Universal Reactor, Cost, Unemployment
Document Summary
Recession when real gdp declines for 2 consecutive quarters. Alternating increases and decreases in economic activity over time. Phases of the business cycle: peak, recession, trough, expansion. Causes of shocks: irregular innovation, productivity changes, monetary factors, political events. Decline in gdp causes an increase in unemployment. Employed full time and part time workers. Unemployed those that are currently not employed but actively seeking work. Labor force all those that are unemployed plus all those that are employed. Discouraged worker: were unemployed then they left the labor force all together (discouraged): this understates unemployment rate. Criticisms of unemployment: involuntary part-time workers counted as full-time, discourage workers are not counted as unemployed. Individuals searching for jobs or waiting to take jobs soon (marketable skills) The short term unemployment: ex: after college graduation, structural unemployment. Occurs due to changes in the structure of the demand for labor: cyclical unemployment. Caused by the recession phase of the business cycle.
