ECO3007-12_Work11 - 1 ECO3007-12_Work11 Chapter 17 ECO 3007-12 Chapter 17 2 ECO3007-12_Work11 1 Active policymaking is all the actions taken in

ECO3007-12_Work11 - 1 ECO3007-12_Work11 Chapter 17 ECO...

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1 ECO3007-12_Work11 Chapter 17 ECO 3007-12 June 28, 2015 Chapter 17:
2 ECO3007-12_Work11 1. Active policymaking is all the actions taken in response to some change in the economy. Passive policymaking is a response to a rule and no change in the economy occurs. These two policies are complete opposites. 2. The natural unemployment rate is the long-run macroeconomic equilibrium when all workers and companies have fully adjusted to any changes in the economy. There are four different types of unemployment: frictional, cyclical, structural, and seasonal. All four are based on the economy and the unemployed. 3. Frictional unemployment is individuals that take time to search for jobs. This is the standard type except when the economy is doing poorly. 4. Structural unemployment is the result of government minimum wage and union activity. When these things change, the unemployment is effected causing it to be based on the structure. 5. Cyclical unemployment is the deviations in the unemployment rate or major fluctuations on the chart.

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