ECON 252 CH 10 NOTES - unemployment rate fluxuates Cyclical...

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ECON 252 CH 10 NOTES Employed: paid, employees, self-employed, and unpaid workers in family business Unemployed: people not working who have looked for work in the past 4 weeks Not in the labor force: everyone else Unemployment rate = # of unemployed/labor force * 100% o |% change in # of unemployed|>|% change in # in labor force| Labor force participation rate = labor force/adult population * 100% Note*: discourages workers are workers who have given up looking for a job and then become not in the labor force Natural unemployment rate: the normal rate of unemployment around which the
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Unformatted text preview: unemployment rate fluxuates Cyclical unemployment: the deviation of unemployment from its natural rate Frictional unemployment: unemployment that results because it takes time for workers to search for jobs that best suit their tastes and skills Structural unemployment: unemployment that results because the number of jobs available is not equal to the number of jobs demanded caused by: o Minimum wage laws o Unions o Efficiency wages...
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