ECON 2030 Chapter : Menu 08 Mar 17
TODAY’S MENU: Wednesday 08 March 2017
I. BUSINESS
A. Practice Problems
1. Chapter 24: 8-10; 13-15
B. Exams returned and reviewed in lab Today/Friday
II. SUBSTANCE
A. Introduction to macroeconomics- collect data, organize it, look for patterns
B. Economic Growth
1. Definition-
2. Measure
3. Major Issue: Fluctuations over time
a. Short Run: Business Cycle- growth on a quarterly basis
i. Recession- period where the economy is growing below
the long run goal rate
ii. Expansion- period where the economy is growing above
the long run goal rate
b. Relation with Business Cycle
i. Procyclical- moving with the business cycle; when the
economy is in an expansion, it’s going up; when the economy is in a recession, it’s going
down; ex=business profits
ii. Countercyclical- moving against the business cycle; when
the economy is in an expansion, it’s going down; when the economy is in a recession,
it’s going up; ex= unemployment rates
c. Long Run: Changes in Productivity- in the long run, our goal is to
have a constant economic growth rate of 2.5-3%
C. Unemployment: The Basics
1. Definitions and measures
a. Unemployment Rate
b. Weekly jobless claims
c. Labor Force Participation Rate
2. BLS Household survey
a. Employed
b. Unemployed
c. Not in Labor Force
d. Civilian Labor Force = a + b
e. Civilian noninstitutional population = a + b + c
III. NEXT TIME
A. Continue Chapter 24: “Economic Growth…”
