Chapter 9 Flashcards
What is this chapter about?
Understanding situations, and how a policy would work through the economy to help the situation
What are the types of unemployment?
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
Who makes up the labour force?
Those older than 15 who are unemployed looking for employment, or are currently employed
what is the formula for labour force
LF = U + E
labour force = Unemployed + Employed
Who is not included in calculating labour force
people in Nunavut, Yukon, NWT
Armed forces- only concerned civilian labour hours
People in jail, hospitals, nursing homes
People on reserves
what is the formula for unemployment rate
U rate = U/LF *100
Labour Force Participation rate (Part Rate) formula
Part Rate = LF/WAP * 100
WAP= working age population
Typically populations that are younger have a better rate