ECON 2133 Study Guide - Midterm Guide: Current Population Survey (Us), Nominal Interest Rate, Real Interest Rate
Document Summary
Technique to adjust income payments by means of price index, maintains the purchasing power of public after inflation. Cpi, gdp: how cpi is used to compare 25657$ amounts in different periods (formula, real v nominal interest rates. Nominal: interest rate not corrected for inflation: rate of growth in dollar value of a deposit or debt. Real: real interest rate = (nominal interest rate) (inflation rate, corrected for inflation, rate of growth in the purchasing power of a deposit or debt. Bureau of labor statistics, based on 60,000 households, 16 years+ Total number of workers, includes employed and unemployed: labor force participation rate, limitations (weakness) of the u-rate or unemployment rate. Does not distinguish between full-time and part-time work. Cyclical, structural, and frictional unemployment: causes of each type. Cyclical: loss of jobs because of downturns in business cycle. Structural: fewer jobs than workers, long-term. Firms voluntarily pay above-equilibrium wages to boost worker productivity.
