Mankiw_ch15.USDa - Mankiw Macroeconomics Chapter 15 (28)...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Mankiw Macroeconomics Chapter 15 (28) Unemployment and its Natural Rate
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A Roadmap for Chapter 15 1. Background 2. Long Run vs. Short Run Unemployment 3. Unemployment - Generally Speaking 4. Determinants of Long-Run Unemployment
Background image of page 2
RGDP Trend How to think about long-run vs. short-run macroeconomics… 1. In Ch.10-11 we study how to measure the key variables in the macroeconomy – GDP, CPI, Price Level 2. In chapters 12-18 we study the REAL economy in the LONG-RUN growth = the slope of the RGDP trend! 3. In chapters 19-21 we study economic fluctuations in the SHORT-RUN – why do we deviate from the trend? RGDP RGDP time t 1 Expansion t 2 Recession
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Unemployment Long Run or Short Run? def: The Natural Rate of Unemployment the normal rate of unemployment around which the unemployment rate fluctuates the long-run rate of unemployment the rate of unemployment when the economy is at “full employment” According to your book, about 5.5% (see next slide) def: Cyclical Unemployment The deviation of unemployment from its natural rate If unemployment > 5.5% Cyclical unemployment is
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

Mankiw_ch15.USDa - Mankiw Macroeconomics Chapter 15 (28)...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online