Macroeconomics 111 - Chapter 8

Macroeconomics 111 - Chapter 8 - Chapter 8 Unemployment and...

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Chapter 8: Unemployment and Inflation Business Cycles – the pattern of real GDP rising and falling Recession – contraction of two or more successive quarters of falling GDP Depression – a severe, prolonged economic contraction. Usually involves unemployment rising to greater than 10% for years Economic Indicators Leading Indicators – A variable that fairly consistently changes before real GDP changes -Average workweek, Unemployment Claims, Manuf. new orders, Stock prices, New plant and equip orders, New building permits, delivery times, interest rate speed, money supply, consumer expectations Coincident Indicators – A variable that fairly consistently changes at the same time as real GDP changes -Payroll employment, industrial production, personal income, manuf. And trade sales Lagging Indicators – A variable that fairly consistently changes after real GDP changes -Labor cost per unit of output, inventories to sales ratio, unemployment duration…. Unemployment
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Macroeconomics 111 - Chapter 8 - Chapter 8 Unemployment and...

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