ECON 2020 Lecture Notes - Lecture 7: Market Basket, Full Employment, Business Cycle
Document Summary
Unemployment rate = # of unemployed / labor force = 5% Full employment rate of unemployment - majority of people seeking work can easily. Types of unemployment: frictional - voluntary, structural - poor match of unemployed and achievable jobs. Regional - jobs in one place, people in another. Occupational - skills: seasonal - e. x. Ski jobs not available in summer: cynical - due to the business cycle (changes in the growth rate of real gdp. Cpi (consumer price index) - market basket of goods and services, unweighted. (tracks price of goods monthly) In ation rate cpi 2016 = cpi 2016 - cpi 2015 / cpi 2015. Types & causes of in ation: demand-pull - demand rises faster than supply causes higher prices, cost-push - decrease supply causes increase price (ex freeze in orida oranges, hyper in ation - printing own currency.
