3360 labour market graphs2

3360 labour market graphs2 - “E+U” is the labour force...

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US JOB LOSSES SOME DEFINITIONS Natural Rate of Unemployment represents joblessness that does not go away on its own even in the long-run. Refers to the amount of unemployment that the economy experiences because of normal turnover and related factors. Cyclical Unemployment refers to the year-to-year fluctuations in unemployment around its natural rate. This deals with short-term fluctuations associated with the business cycle. The Labour Force is the number of employed persons plus the number of unemployed. LF= E+U The Unemployment Rate is: u = U/(LF) “u” is the unemployment rate “U” is the number unemployed “E” is the number employed
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Unformatted text preview: “E+U” is the labour force Search unemployment is inevitable because the economy is always changing. Situations that cause this type of unemployment include: New entrants into the job market Re-entrants into the labour force Relocations Job quitters Job losses-layoffs, closures US Employment US Unemployment Rate US MACRO deficits CBO is Congressional Budget Office AUTO SALES-DOMESTIC Okun’s Law ie and se when se>ie: Note that this diagram CANNOT be done correctly with only 2 budget lines. The dashed line through B and C is essential. Diagrams are from various sources and are for student use only....
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This note was uploaded on 05/27/2010 for the course ECON ECON 3360 taught by Professor Smith during the Fall '10 term at Carleton CA.

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3360 labour market graphs2 - “E+U” is the labour force...

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