Unemployment and Inflation

Question 1

Seasonal unemployment

Answer 1

Resulting from seasonal changes in the weather order demand for certain products jobs

Question 2

Formula for unemployment rate

Answer 2

Number of people employed/ # of labor force x100

Question 3

why is there always fricitional unemployment in the economy

Answer 3

People are always looking for a better job

Question 4

How do you calulate the unemployment rate?

Answer 4

Civilian Labor Force- Number Employed= Number Employed

Question 5

Demand Pull

Answer 5

All sectors in the economy try to buy more goods and services than the ecnomy produces

Question 6

2 ex. of structural unemployment

Answer 6

Tech. econ. progress

Outsourcing

Question 7

Define Structural Unemployment

Answer 7

Economc progress change in consumer tastes & preferences or fundamental change in operations of economy reducing “demand” for workers and their skills

Question 8

Outsourcing

Answer 8

having outside firms to perform non-core operations to lower operation cost

Question 9

Define Frictional Unemployment

Answer 9

Workers are between jobs for one reason or another

Question 10

What groups are excuded from civilian labor force

Answer 10

MEmbers of military, prisoners, mental health, facilites

Question 11

How did the auction in class show how excessive monetary leads to inflation

Answer 11

more money in economy- higher products are sold b/c consumers have more to spend

Question 12

Describe how increase in minimum wage would lead to high prices

Answer 12

More money is given into the economy inflation so the workers buy more/same amounnt for higher prices

Question 13

define cost-push

Answer 13

riaing cost of input, (especially energy & organized labor) that drive up product costs 4 manufactures causing inflation

Question 14

Cyclical Unemployment

Answer 14

Unemployment directly related to swings in business cycle