ECON 200 Lecture Notes - Lecture 21: Full Employment, Root Mean Square

• School: University of Arizona
• Department: Economics
• Course: ECON 200
• Professor: Steven Reff

Document Summary

Macroeconomic basic concepts institutionalized individuals (prisoners, mental institute, nursing home) Five macroeconomic goals: full employment, stable prices (determined by the consumer price index, economic growth (quarterly growth rate in real gdp, favorable balance of trade, limiting government growth (gov. receipts and expenditures) Consumers, households, rms (private sector: households and rms) (public sector: government) When we look at unemployment, we look at the natural rate of unemployment. Natural rate of unemployment: the normal rate of unemployment around which the unemployment rate uctuates. The long run rate of unemployment is somewhere between 5-6% To be unemployed: must be 16 years of age or older, must have been looking for a job within the past 4 weeks, and haven"t found a job. Civilian labor force = employed workers + unemployed workers. To gure out unemployment rate: # of unemployed workers / # in labor force.