We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byRebecca Noseworthy
Modified about 1 year ago
Under 15 and/or Institutionalized (5.3 million) Not in labor force (9.3 million) Employed (17.3 million) Unemployed (1.4 million) Total population (4.3 million) Labor force (18.7 million) Unemployment rate = 1.4 million 18.7 million X 100 = 7.4% Unemployment rate = # of unemployed labor force X 100 LO2 1©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
How the unemployment rate is understated: Part-Time Employment Statistics Discouraged Workers 2©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
Frictional Unemployment caused by workers voluntarily changing jobs and by temporary layoffs; unemployed workers between jobs Structural Unemployment caused by Changes over time in consumer demand and in technology alter the “structure” of the total demand for labour, both occupationally and geographically Cyclical Unemployment caused by a decline in total spending (or by insufficient aggregate demand) Seasonal Unemployment caused by seasonal factors 3©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
Natural rate of unemployment (NRU) NOT zero unemployment Occurs when there is no cyclical unemployment Not automatic Varies over time 4©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
GDP Gap GDP gap = actual GDP – potential GDP Can be negative or positive Okun’s Law Every 1% of cyclical unemployment creates a 2% GDP gap 5©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
6©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
Given for 2009: Unemployment rate is 8.3% Natural rate is 6.5% Potential GDP is $1360 billion What is the GDP gap? 8.3% 6.5% = 1.8% (gap in % terms) 1.8% X 2 = 3.6% (apply Okun’s Law) 3.6% of $1360 billion = $49 billion 7©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
Unequal Burdens Occupation Age Gender Education 8©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
9©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
Unemployment means idleness Increases poverty, heightens racial and ethnic tensions, and reduces hope for material advancement Severe unemployment can lead to rapid and violent social and political change higher unemployment linked to increases in suicide, homicide, and physical and mental illness 10©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
11©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
12©2013 McGraw-Hill Ryerson Ltd.Chapter 7, LO2
Business Cycle & Unemployment The economy in flux.
Grade 10. Social economics may refer broadly to the use of economics in the study of society Social economics is a discipline studying the reciprocal.
Most wage increases occur through a demand-supply negotiation mechanism between unions and employers. These are called enterprise negotiations and usually.
2011 Day 2 By: Aakriti, Gloria, Cynthia, Theresa.
Jobs and Unemployment CHAPTER 6 When you have completed your study of this chapter, you will be able to C H A P T E R C H E C K L I S T Define the unemployment.
Unit 3 Macroeconomics. Unit Vocabulary Gross Domestic Product Business Cycle Consumer Price Index Unemployment Rate Monetary Policy Fiscal Policy Interest.
Population and Poverty Tom Merrick World Bank Institute August 21, 2002.
Facing Economic Challenges Economics Chapter 12 Notes.
AGGREGATE DEMAND (AD): The quantity of real GDP demanded at different price levels. -The price level is measured using the GDP deflator. -The quantity.
Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter 9 Growth.
MEASURES OF ECONOMIC GROWTH Biba S. Kavass. OBJECTIVES Define economic growth. Analyze measures of economic growth. Examine GDP per capita. Analyze how.
Chapter 13: Economic Challenges Unemployment 4 Types of Unemployment 4 Types of Unemployment Frictional Unemployment Frictional Unemployment People are.
Unequal Risks of Poverty Morag Gillespie, Scottish Poverty Information Unit School of Law and Social Sciences,
The Unemployment Rate = the number unemployed divided by the workforce.
Chapter 8 Unemployment Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Slide 1 Copyright © 2004 Glenna R. Shaw & FTC Publishing Background Courtesy of Awesome BackgroundsAwesome BackgroundsCommunication! Macro Policy.
©2012 The McGraw-Hill Companies, All Rights Reserved 1 Chapter 20: Short-term Economic Fluctuations.
PowerPoint to accompany Chapter 13 Aggregate Demand and Aggregate Supply Analysis.
AD and AS. AGGREGATE DEMAND (AD): The quantity of real GDP demanded (total quantity of G&S that all buyers in an economy want to buy) at different price.
© 2002 McGraw-Hill Ryerson Ltd.Chapter 4-1 Labour Supply Over the Life-cycle Chapter Four Created by: Erica Morrill, M.Ed Fanshawe College.
At Full Employment: The Classical Model CHAPTER 23.
Chapter 9 Why High Unemployment Persists. Successes and Failures Over the past two decades, governments have generally learned how to control inflation.
AD and AS Tragakes 2012, chapter 9. Aggregate Demand Aggregate Demand (AD): The total quantity of aggregate output, or real GDP, that all buyers in an.
Monitoring Jobs and the Price Level CHAPTER 22. After studying this chapter you will be able to Define the unemployment rate, the labor force participation.
MONITORING CYCLES, JOBS, AND THE PRICE LEVEL 22 CHAPTER.
Copyright (c) 2000 by Harcourt Inc. All rights reserved. Next page Slides to Accompany Economics: Public and Private Choice 9th ed. James Gwartney, Richard.
Characteristics of Developing Countries Blink & Dorton, 2007, p SECTION 5: DEVELOPMENT ECONOMICS.
Why do Americans earn more and produce more than Europeans? Compared to the average European, the average American works longer hours, produces more,
© 2010 Pearson Addison-Wesley. The Basics of Economic Growth Economic growth is the sustained expansion of production possibilities measured as the.
AE equilibrium At full employment, real GDP equals potential GDP and the unemployment rate equals the natural unemployment. Y = Y FE u c = 0 g 3% 2% u.
© 2016 SlidePlayer.com Inc. All rights reserved.