01:220:103 Lecture Notes - Unemployment Benefits, Business Cycle, Classical Economics
Document Summary
Used to refer to pattern we observe in economic activity over time. Prosperity full employment, high level of economic activity, growth and expansion, households optimistic. Recession business activity slows, orders are drying up and slowing down, unemployment emerges, people become nervous about layoffs, households leery. Depression high unemployment, low production, factories are closed, firms aren"t replacing machines, people spend as little as possible. Recovery orders flow back into firms, call people back to work, economic activity picks up, and unemployment lowers. *some people say it"d be more appropriate to call it business fluctuation. All individuals 16 years or older who aren"t institutionalized and are currently employed or unemployed and seeking employment. Voluntary unemployment exists when there are plenty of jobs at going wage, but individual refuses to work for going wage. Involuntary unemployment a person is willing and able to work at going wage but they can"t find a job.
