ECO 212 Lecture Notes - Lecture 3: Loanable Funds, Nominal Interest Rate, Tax Credit
13 Jul 2016
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Natural rate of unemployment: the normal rate of unemployment around which the actual unemployment rate fluctuates. Cyclical unemployment: the deviation of unemployment from its natural rate; Associated with business cycles (gdp and economy fluctuates over time) (2) structural unemployment: occurs when there are fewer jobs than workers; usually this is long term; not enough jobs for the amount of workers in work force. Job search: the process of matching workers with appropriate skills: some government programs dedicated to matching individuals with jobs. Government employment agencies give out information about job vacancies to speed up the matching of workers and jobs. Public training programs aim to equip workers displaced from declining industries with the skills needed in growing industries. Unemployment insurance: a government program that partially protects workers" incomes when they become unemployed. 4/28/14 11:38 am: increases frictional unemployment; people respond to incentives- insurance ends when workers take job less incentive to search or take jobs while eligible to receive benefits.
