Chapter 9 Flashcards

1
Q

What is this chapter about?

A

Understanding situations, and how a policy would work through the economy to help the situation

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2
Q

What are the types of unemployment?

A

Frictional
-Voluntarily out of work
-switching jobs, higher paying more productive job
-Government can set up job centers, ex Canada Employment Centres; these might match someone with a job they will be more productive at

Structural
-Involuntary
-Due to globalization, technological advances, changes in consumer preferences
-Requires reeducation, retraining, skills development
-Gov. can assist in geographical relocation to work

Cyclical
-Based on the business cycle
-need to move out of a recession
-Use expansionary fiscal policy- increase G and/or reduce T, provincial/federal
you can also use expansionary monetary policy- reduce interest rates, increases I and C, increases GDP

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3
Q

Who makes up the labour force?

A

Those older than 15 who are unemployed looking for employment, or are currently employed

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4
Q

what is the formula for labour force

A

LF = U + E

labour force = Unemployed + Employed

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5
Q

Who is not included in calculating labour force

A

people in Nunavut, Yukon, NWT

Armed forces- only concerned civilian labour hours
People in jail, hospitals, nursing homes
People on reserves

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6
Q

what is the formula for unemployment rate

A

U rate = U/LF *100

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7
Q

Labour Force Participation rate (Part Rate) formula

A

Part Rate = LF/WAP * 100

WAP= working age population

Typically populations that are younger have a better rate

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