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Unformatted text preview: Unemployment and Inflation - Labor Force the sum of employed and unemployed workers in the economy- Unemployment Rate the percentage of the labor force that is unemployed Unemployment Rate = ((number of unemployed)/ (Labor Force)) X100- Discouraged Workers people who are available for work but have not looked for a job during the previous four weeks because they believe no jobs are available for them- Labor Force Participation Rate measures the percentage of the working-age population in the labor force Labor Force Participation Rate = ((labor Force)/ (Working-Age Population)) X100- Frictional Unemployment short-term unemployment that arises from the process of matching workers with jobs- Structural Unemployment Unemployment arising from a persistent mismatch between the skills and attributes of workers and the requirements of jobs- Cyclical Unemployment Unemployment caused by a business cycle recession- Natural Rate of Unemployment the normal rate of unemployment consisting of...
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This note was uploaded on 01/19/2012 for the course CIT 230 taught by Professor Staff during the Fall '08 term at Oakland University.
- Fall '08