Economics 202 Chapter 6

Economics 202 Chapter 6 - Economics 202, Chapter 6...

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Economics 202, Chapter 6 Unemployment The labor force includes all persons over age sixteen who are either working for pay or actively seeking paid employment. The labor-force participation rate is the percentage of the population working or seeking employment. People who are neither employed nor actively seeking work are called nonparticipants . Production is limited by two factors: o The availability of factors of production. o Technological know-how. o Economic growth is an increase in output (real GDP); an expansion of production possibilities. Okun’s Law asserts that 1% more unemployment results in 2 percent less output. U.S. Census Bureau surveys about 60,000 households a month to determine how many people are actually unemployed. Labor Force = Employed + Unemployed Labor Force Participation = labor force/adult population The unemployment rate is the proportion of the labor force that is unemployed.
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Economics 202 Chapter 6 - Economics 202, Chapter 6...

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