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10-26 notes - TODAYS MENU: Monday 26 October 2009 I....

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TODAY’S MENU: Monday 26 October 2009 I. BUSINESS A. Practice Problems 1. Chapter 22: 1-4, 7-16, 19, 20 2. Chapter 23: 1, 2, 6-11, 13, 16, 18, 19 B. Third exam: Two weeks from today (09 November) II. SUBSTANCE We cannot observe the macro economy so we collect data on very specific grounds. Last week we defined how unemployment is measured in different countries. They are measured based on different definitions. We will look at the U.S. Once we know who is unemployed and not unemployed we can find out how to deal with it. Because unemployment is a waste of resources, so there are people that do not have jobs that could be producing goods that people could consume. So unemployment is a problem. We can never get rid of it but we can try to minimize it. A. Unemployment: Four Types 1. Frictional – This is the good unemployment One person who is unemployed available and looking for work. We have one job available that requires that persons skills. They have not met yet so the person does not have the job. This is an inevitable type of unemployment. It’s based on the individual, the individual business. Because they want to choose the best type of employer, and the worker wants to find a job that fits them best and will give them satisfaction, so this is necessary. The most productive use of our resources happens when everyone is happy doing what they want to do so this is necessary unemployment. 2. Structural – This is the bad. a. Definition – Characterized by the industry wide and regioinal economist. Start out with the person unemployed and seeking job, and there is a job available, so like frictional. However in these cases there is no skills match or there is a geographic location problem. b. Long-term; undesirable; policies – Long term because the potential worker and the job don’t have skills that match each other. You have to obtain skills that allow you to do the jobs because you don’t have the necessary skills now, yours are outdated, or you will remain unemployed forever. c.
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This note was uploaded on 12/09/2009 for the course ECON 2030 taught by Professor Bong during the Spring '07 term at LSU.

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10-26 notes - TODAYS MENU: Monday 26 October 2009 I....

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