Macro_2.2-_Unemployment.ppt - Unit 2: Unemployment...

Unit 2:
Unemployment
1
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ACDC Leadership 2015

Identify the parts of the business cycle 1-7
#5
#6
#7
2
Time
Real
GDP
#3
The Business Cycle Quiz
#4
#1
#2
Real GDP
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ACDC Leadership 2015

The national economy goes up and down like a roller
coaster over time
A recession is 6 month period of decline in Real GDP.
(If really bad…then depression)
Inflation
Unemployment
Full
Employment
3
Time
Real
GDP
Recession
(Contraction)
The Business Cycle
Recovery
(Expansion)
Peak
Trough
Real GDP
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ACDC Leadership 2015

Goal:
Zero % Unemployment?
4
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ACDC Leadership 2015

Goal:
Limit Unemployment
5
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ACDC Leadership 2015

What is Unemployment?
Who is in the Labor Force?
•
Above 16 years old
•
Able and willing to work
•
Not institutionalized (in jails or hospitals)
•
Not in military, in school full time, or retired
Why is a stay at home mom not unemployed?
Unemployment
rate
# unemployed
# in labor force
x
100
=
6
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ACDC Leadership 2015

2008 Audit Exam

Three Types of
Unemployment
8
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ACDC Leadership 2015

3 Types of Unemployment
#1. Frictional Unemployment
•
Frictional unemployment - Temporary
unemployment or being between jobs
•
Individuals are qualified workers with
transferable skills.