Lecture 13 - Lecture 13: Unemployment and Inflation...

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Lecture 13: Unemployment and Inflation business cycles measuring unemployment inflation Business Cycles The American economy experienced increasing material wealth and productivity over the century. However, the growth of output has not been smooth: periods of rising output are followed by periods of falling output. These fluctuations in economic activity are called business cycles . A recession is a decline in total output, income, employment, and trade usually lasting 6 months to a year, and marked by widespread contractions in many sectors of the economy. Measuring Unemployment The labor force consists of those people with jobs and those people looking for work. The labor force participation rate measures the fraction of the civilian, noninstitutionalized population of those 16 years of age or older who are in the labor force. A person is unemployed if they are looking for a job but unable to find one. The unemployment rate is calculated by dividing the number of unemployed people by the size of the labor force. The official unemployment rate may overstate or understate the true amount of unemployment:
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This note was uploaded on 03/21/2012 for the course ECO ECO2023 taught by Professor Hermbaine during the Winter '09 term at Broward College.

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Lecture 13 - Lecture 13: Unemployment and Inflation...

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