Unemployment Flashcards
1
Q
What is Labor Force?
A
of ppl in a country counting as employed or unemployed
2
Q
What is Frictional unemployment?
A
Voluntary leave, “between jobs,” college to workforce
3
Q
What is Structural unemployment?
A
Lack of skills or declining industry (high school dropout, type writer repairman)
4
Q
What is Cyclical unemployment?
A
Associated with recessions
5
Q
What is Seasonal unemployment?
A
Due to weather, buying patterns (mall santas, etc.)
6
Q
What is Full Employment?
A
No cyclical unemp. in economy (no recession)
7
Q
What is Okun’s Law?
A
For every 1% in unemp, GDP declines by 2%
