ECON 2202 Lecture 5: Ch1.4-5 labor market measurement; Business Cycle Management

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31 May 2019
Midterm 10.02; 11.01
1.3 savings
National savings
Individuals firms and government
Private sector: individuals and firms
Private Savings = disposable income -Consumption
Sp = Yd - C
Where Yd = Y+NFP + TR + INT - T
Government savings: Sg= T- TR- INT- G
Where G is government spending
Public sector: government
National savings = Sg + Sp
Expenditure identity : Y= C+ I + G + NX
S= Y + NFP - C - G
S= C+ I+ G+ NX -C -G +NFP
S= I+ NX + NFP
NFP= net factor payment
1.4 labor market measurement
Labor force= employed people + unemployed people
Unemployed rate = unemployed / labor force
Participation rate = labor force / working-age population
1.5 Business Cycle Management
The fluctuations are what is commonly called business cycle.
Peak: a large positive deviation from trend.
[ a series of peaks is boom.]
Trough: a large negative deviation from trend.
[a series of trough is recession.]
Thursday, September 13, 2018
11:00 AM
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