Economics 012 2-8-2008

Economics 012 2-8-2008 - searching o Types of unemployment...

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Economics 012—2/8/2008 - Goals of Macroeconomic Policy o Economic growth o Low unemployment levels o Low inflation rate - Economic growth o Labor productivity= GDP per hour of work o Potential GDP: the GDP if all available inputs are utilized (labor and capital) o Production function: y=f (K,L) Gives us the value of production if we use capital (K) and labor (L) - Low unemployment levels o Employment: count of people who are actually working o Unemployment: not working, but actively searching for a job Temporarily laid off Searching for more than 4 weeks o Out of labor force: people who are unemployed and not
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Unformatted text preview: searching o Types of unemployment Frictional: quit jobs but in a few weeks will have a new job Structural: refers to those people that are unemployed and are not likely to find a job because the market is looking for a different kind of killed worker Cyclical: GDP based Increases in recessions Decreases in booms-Low inflation rates o Purchasing power: measures volume of goods and services that a given amount of money will buy o Real wages: wages/CPI Adjusted for inflation...
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Economics 012 2-8-2008 - searching o Types of unemployment...

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