lesson 9 - unemployment

Question 1

unemployment

Answer 1

when people are not working but they are looking for work

Question 2

unemployed

Answer 2

a term for someone who could be working and wants to work but isn’t working

Question 3

unemployment rate

Answer 3

percentage of people who want to work that are unemployed

Question 4

labor force

Answer 4

of people who are employed or unemployed (looking)

Question 5

eligible population

Answer 5

e.g in us you need to be 16 or older, not in prison and not in the military

Question 6

labor force participation

Answer 6

percentage of eligible population in the labor force

Question 7

discouraged workers

Answer 7

ppl who dont have a job and want a job but have given up looking so they are not in the labor force

Question 8

underemployed

Answer 8

people working part time but would work full time if they could

Question 9

full employment output

Answer 9

the amount of output that is produced in an economy when the economy uses resources effectively

Question 10

natural rate of unemployment

Answer 10

the rate that exists when an economy is producing the full employment output

Question 11

frictional unemployment

Answer 11

part of natural unemployment
occurs because you cannot go from a job to another immediately, you need to find one, apply, etc.

Question 12

structural unemployment

Answer 12

component of natural employment
occurs when your skills are no longer needed in the economy

Question 13

cyclical unemployment

Answer 13

associated with recessions and expansions–> the reason why natural unemployment is different than the current unemployment rate