Measuring the Economy. Unemployment Questions: Employed people are people with jobs? Unemployed people are people without jobs? The civilian labor force is the number of people aged 16 years and older who are not in the armed forces?. Employment Definitions.
Measuring the Economy
Employed people are people with jobs?
Unemployed people are people without jobs?
The civilian labor force is the number of people aged 16 years and older who are not in the armed forces?
1. Frictional unemployment
Temporary condition that occurs when an individual is out of their current job and looking for another job or looking for their first job.
2. Structural unemployment
a)Workers who cannot find jobs because the structure of the economy has changed
b) New technology is introduced or the company relocates and the worker does not want to move Examples:
3. Cyclical unemployment
a) Workers who are laid off due to a downturn in the economy.
b) They expect to be rehired when the economy improves
4. Seasonal Unemployment
a) Occurs due to the seasonal nature of jobs
b) What industries are affected by seasonalunemployment?
TRUE OR FALSE
Inflation: increase in the average price level of all the goods and services produced in the economy
Consumer Price Index
Gross Domestic Product
GDP= C + I + G + (X-M)
Net Exports (X-M)
The US GDP in 2012 (trillions of dollars)
GDP = C + I + G + (X-M)
$15.68=$11.11 + $2.06 + $3.06 + ($2.18-$2.70)
Increase in GDP
Decrease in GDP
GDP gives us a ballpark idea of how much we produce, not necessarily how well off we are