2. Unemployment

Question 1

Fluctuations of growth with GDP; peak, trough, recession, expansion

Answer 1

Business Cycle

Question 2

• Not worked that 1 week and tried to find work in the past 4 weeks
• Waiting to start a new job in X (time), X=Unemp.
• Temporarily laid off

Answer 2

Unemployed

Question 3

• 1 hr per week, with pay or owns a business
• Family business w/wo pay
• Gov’t has a job fit for me

Answer 3

Employed

Question 4

UR = U/Labor Force (U+E)

Answer 4

Unemployment Rate

Question 5

LFPR = Labor Force/Population

Answer 5

Labor Force Participation Rate

Question 6

E = E/Pop

Answer 6

Employment Rate

Question 7

Natural process of workers moving from job to job
- Workers seeking, employers seeking
- Unavoidable, always going to happen

Answer 7

Frictional Unemployment

Question 8

Absence of demand for workers needed in that field
- Reorganization of positions/industry
- Unavoidable, always going to happen

Answer 8

Structural Unemployment

Question 9

Result of changes to an economy’s business cycle
- Job losses
- Economic recession
- Effects all workers
- Full Employment > cyclical = 0%
- Avoidable, can be reduced or eliminated

Answer 9

Cyclical Unemployment

Question 10

Unemployment at certain times of the year
- Unavoidable, always going to happen

Answer 10

Seasonal Unemployment