Lost income for labor suppliers, lost output, coupled with economic and psychological costs of unemployment on the individual and the family. :(
civilian non institutional adult population
consists of all civilians 16 years of age and older, except those in prison, in mental hospitals, or in homes for the aged; excludes military.
Those 16 years of age and older who are either working or looking for work
The number of unemployed as a percentage of the labor force
Those who drop out of the labor force in frustration because they can't find work
labor force participation rate
The labor force as a percentage of the adult population
unemployment rate formula
number unemployed / number in labor force
Labor force participation rate formula
Number in labor force/ number in civilian non institutional adult population
Those looking for work 27 weeks or longer
Unemployment that occurs because job seekers and employers need time to find each other; Frictional unemployment does not usually last long and results in a better match between workers and jobs, so the entire economy works more efficiently
Unemployment caused by seasonal changes in the demand for certain kinds of labor
Unemployment because (1) the skills demanded by employers do not match those of the unemployed, or (2) the unemployed do not live where the jobs are ; Policy makers and economists are very much concerned with this type of unemployment
Unemployment that fluctuates with the business cycle, increasing during recessions and decreasing during expansions ; Government policies that stimulate aggregate demand aim to reduce cyclical unemployment
Employment level when there is no cyclical unemployment, not 0% rather 4-6% unemployment is considered full employment
Workers are overqualified for their jobs or work fewer hours than they would prefer
A very high rate of inflation
A sustained decrease in the price level
A reduction in the rate of inflation
A sustained rise in the price level caused by a rightward shift of the aggregate demand curve
A sustained rise in the price level caused by a leftward shift of the aggregate supply curve
The dollar amount paid by borrowers to lenders
Interest per year as a percentage of the amount loaned
nominal interest rate
The interest rate expressed in dollars of current value (that is, not adjusted for inflation) as a percentage of the amount loaned; the interest specified on the loan aggrement
real interest rate
The interest rate expressed in dollars of constant purchasing power as a percentage of the amount loaned; the nominal interest rate minus inflation rate
cost-of-living adjustment; an increase in a transfer payment or wage that is tied to increase in the price level.
Real interest rate formula
Nominal interest rate - Inflation rate
Which is group is lowest/highest in unemployment rate?
Lowest: white adults, highest black teenagers
Causes of Structural unemployment?
weather/seasons on certain industries such as construction, agriculture and tourism
What arises causing structural unemployment?
Changes in tastes, technology, taxes and competition all reduce the demand for certain skills and increase the demand for other skills.