Economics 1022A/B Chapter Notes - Chapter 21: Output Gap, Labour Force Survey, Gdp Deflator

• School: Western University
• Department: Economics
• Course: Economics 1022A/B
• Professor: Bruce Hammond

Document Summary

Why unemployment is a problem: unemployment results in lost production and incomes lost human capital, education, experience, know how, prolonged unemployment permanently damages a person"s job prospects by destroying human capital. Labour force survey (statistics canada: how do we measure who is employed, how much of our potential for production are we actually using, use a survey of everyone in our labour force. 4 labour market indicators: the unemployment rate- (know this one r4, the percentage of the labour force that is unemployed, = (the number of people unemployed/ labour force) x 100, the unemployment rate increases in a recession. Involuntary part-timers: part time workers who would like full-time jobs and cant find them are part-time employed but not counted as such in the official statistics. Frictional unemployment: arises from normal labour market turnover, regular job turnover, job creation, labour force (re)entry.