CLAS 110 Lecture Notes - Lecture 2: Environmental Quality, Three Steps, Current Population Survey (Us)
Week 2
Lecture 3
● Types of Unemployment
○Frictional
■ The unemployment due to “normal” labor market turnover”
■ It always takes time to find a job after entering or reentering the labor
force
■ It takes time to hire workers
■ Things that affect frictional unemployment
● The internet, or any other informational things that reduce search
costs
● Unemployment benefits- may reduce the incentive to look for a job
or less likely to accept a low-paying job
● The rate at which people enter the labor force
○Structural
■ Unemployment that occurs due to changes in economy that change the
skill requirement to perform jobs or change the location of the job
■ Things that affect structural unemployment
● Job training program
● Things that help individuals relocate to where jobs are
● Things that incentivize people to acquire more education
- Altough unemployment is different for who are unemployed, the things that cause
frictional/structural unemployment are good
- They are a result of our economy growing and innovating
○ Cyclical
■ Created by business cycles
■ Increases during recessions and decreases during expansion
● Chapter 8 - The Price Level and Inflation
○Price level
● Chapter 6
○GDP per capita
■ Real GDP takes inflation into account
■ However, real GDP does not take population into account
● If two countries have the same real GDP, but one country has a
higher population it must have a lower standard of living than the
other country
■ Per capita GDP accounts for population
■ Real GDP per capita = real GDP/population
● Gives us the best idea of a country’s standard of living
○Growth Rate of GDP
■ We often want to know not only what a country’s GDP is but also its
growth rate
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Document Summary
The unemployment due to normal labor market turnover . It always takes time to find a job after entering or reentering the labor force. The internet, or any other informational things that reduce search costs. Unemployment benefits- may reduce the incentive to look for a job or less likely to accept a low-paying job. The rate at which people enter the labor force. Unemployment that occurs due to changes in economy that change the skill requirement to perform jobs or change the location of the job. Things that help individuals relocate to where jobs are. Things that incentivize people to acquire more education. Altough unemployment is different for who are unemployed, the things that cause frictional/structural unemployment are good. They are a result of our economy growing and innovating. Increases during recessions and decreases during expansion. Chapter 8 - the price level and inflation. However, real gdp does not take population into account.
