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Unformatted text preview: Ch7. Unemployment: total # of work of 16 & ^ who are willing & able to work & actively looking for work but dont have a job Labor Force: Employed + Unemployed Unemployment rate: unemployed/labor force x 100 Types of Unemployment: Frictional (in between), structural (poor match of skills: labor unions), cyclical (*bad: demand is insufficient), seasonal (specific industries) Inflation: upward movement in the average level of prices; weakens ability to buy; today basket/base year basket Costs: unemployment-lost production; inflation- dollar worth less. Discouraged workers: stopped looking bc convinced wont get a job, make unemployment rate lower bc not in labor force Nominal: price in todays dollars Real: value expresses in purchasing power (nominal anticipated rate of inflation). Inflation: creditor loses; lender gains unemployment COLA- cost of living adjustment (2-3% raise) Ch8. Gross Domestic Product (GDP) total market value of final goods & services produced by factors of production located in nation; measured in nominal; not included: illegal, underground, household, used, gifts, stocks, non-market production, quality of life: measures quantity not quality...
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