1. Under age 16? In an institution? On active duty in the military? Been actively searching for work? Available to start a job? Not surveyed by the Bureau of Labor Statistics 70.8 million “Yes” to any question “No” to all questions in Box A Worked at all last week for pay or profit? Worked 15 hours or more in a family business? “No” to both questions in Box B “Yes” to either question EMPLOYED 146.0 million UNEMPLOYED 7.2 million “Yes” to both questions “No” to either question in Box C NOT IN THE LABOR FORCE 79.5 million LABOR FORCE 153.2 million A C B

3. 1969- 1970 1973- 1975 198020011990- 1991 1981- 1982 Year Unemployment Rate (percent)

4. Demand Wage Quantity of Labor Supply WEWE LELE

5. Demand Wage Quantity of Labor Supply LSLS LDLD W* Labor Surplus (Unemployment)

6. Employment and output Aggregate demand for goods and services Spending stimulates firms to produce Production generates incomes Incomes give actors the ability to spend Income

7. Unemployment Rate Year “Natural” Rate of Unemployment Actual Rate of Unemployment

8. 1963 1969 1968 1967 1966 1965 1964 Unemployment Rate (percent) Inflation (percent per year) NAIRU

9. “Natural” Rate? Unemployment Rate (percent) 1970198020001990 Year

10. Men Women Labor Force Participation Rate (percent)