Textbook Notes (368,125)
Canada (161,663)
Economics (279)
ECON 1000 (180)
Chapter 9

Chapter 9

2 Pages
88 Views
Unlock Document

Department
Economics
Course
ECON 1000
Professor
Troy Joseph
Semester
Winter

Description
Macroeconomics Chapter 9 Unemployment and its Natural Rate • Country that saves & invests high fraction of its income enjoys more rapid growth in its capital stock & GDP than a similar country that saves & invests less • Economy’s Natural Rate of Unemployment: amount of unemployment that the economy normally experiences • Cyclical Unemployment: year-2-year fluctuations in unemployment around its natural rate • Natural unemployment does not go away on its own Identifying Unemployment How is Unemployment Measured? • Employed  if he/she spent some of previous week working at a paid job • Unemployed  if he/she is on temporary layoff or is looking for a job • Not in the labour force  ie. Full-time student, homemaker, retiree • Labour Force = # of Employed + # of Unemployed • Unemployment Rate = (# of Unemployed/Labour Force) X 100 • Labour-Force Participation Rate = (Labour Force/Adult Population) X 100 Does the Unemployment Rate Measure What We Want It To? • Discouraged Searchers: people who want to work but have given up on looking for a job Why Are There Always Some People Unemployed? • Natural Rate of Unemployment: rate of unemployment the economy tends to return to in the long run • Employment rate differs from natural rate due to Cyclical Unemployment: departure of unemployment from its natural rate, arises due to SR econo
More Less

Related notes for ECON 1000

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit