U notes - U rate maybe overstated because Decreases in rate...

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Unit 2 Notes/Objectives: Measurement of Economic Performance Topic 2: Unemployment: “Will the real U please stand up!” During your reading define or explain: Be sure you can calculate the U rate and the LFPR Unemployment Civilian Labor Force Labor Force Participation Rate PPF: LFPR vs. U rate Employed vs. Unemployed Actual Unemployment vs. Natural Unemployment Types of U: Structural Frictional Seasonal Cyclical Economic costs of U: 1. Okun’s Law: for every 1% of U = 2% loss of GDP (GDP gap); growth 2. Unequal burdens of U: a. b. c. d. e.
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Non-economic costs of U: Political costs of U: Misery Index: Combination of the unemployment rate and the inflation rate
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Unformatted text preview: U rate maybe overstated because Decreases in rate due to increases in people dropping out (discouraged workers) Decreases due to government accounting of false information geography Reasons for Unemployment: 1. Job loser: person either fired or laid off (51.5%) 2. Job Leaver: person who quits (11.5%) 3. Reentrant: person previously employed who hasnt worked for some time (30.2%) 4. New entrant: person never held a full-time job for 2 weeks or longer; not looking (6.8%)...
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This note was uploaded on 05/18/2011 for the course ECON 101 taught by Professor Mcdounough during the Spring '11 term at DeVry Westminster.

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U notes - U rate maybe overstated because Decreases in rate...

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