ec-27 - Chapter 7 Class (1) I. Three basic focuses of macro...

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Chapter 7 Class (1) I. Three basic focuses of macro a. Unemployment b. Average price levels c. Business fluctuations II. Unemployment: definition a. The total number of adults (aged 16 +) who are willing and able to work and who are actively looking for work, but have not found a job III. Unemployment: the costs a. Lost output i. Unemployment is the inefficient use of the labor resource b. Personal psychological impact IV.Unemployment: measuring a. Unemployment rate i. % of measured labor force that is unemployed ii. = (unemployed/labor force) * 100 b. Labor force i. Individuals aged 16 + who either have jobs or are looking and available for jobs ii. = the employed + the unemployed V. Unemployment: categories → not as important as knowing the types of unemployment a. Job loser b. Reentrant c. Job leaver d. New entrant
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VI.Unemployment: duration a. Duration of unemployment i. More than 1/3 of job seekers find work within 1 month ii. Another 1/3 find employment within a 2 nd month iii. 1/6 are still employed after 6 months iv. Average duration is just over 15 weeks throughout the last decade VII. Unemployment: bias a. Discouraged workers i. Individuals who have stopped looking for a job because they are convinced
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ec-27 - Chapter 7 Class (1) I. Three basic focuses of macro...

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