ECON102 Chapter Notes - Chapter 21: Business Cycle, Tute, Real Wages

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: Wokia Kumase

Document Summary

2 main reasons why unemployment is a serious personal and social economic problem. Loss of incomes and production: loss of income: frightening prospect, loss production: lower consumption and lower investment in capital. Lowers the living standard in both the present and the future. Loss of human capital: ex. manager loses his job when his firm downsizes; after trying to get back, he can"t compete with younger mba graduates, loss of human capital is particularly acute for older workers. Measures the unemployment rate of canada each month. Statistic canada conducts a labour force survey (54,000 households) Class: the labour force survey deliberately excludes individuals in all of the following categories: Persons residing in the yukon, the northwest territories, nunavut, and aboriginal. Working-age population: total number of people aged 15 years and older who are not. People too young to work (under 15 years of age) or in institutional care (in jail)