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Related Flashcards
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Cards In This Set
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Natural rate of unemployment
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Amount of unemployment that the economy normally experiences, between 5% and 6%
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Cyclical unemployment
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Year to year fluctuations in unemployment around its natural rate
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Unemployed
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Capable of work, willing to work, looking for work
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Discouraged workers
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Unemployed and want to work but not looking for work
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Labor force
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Total # of workers, including both the employed and unemployed
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Unemployment rate
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% of labor force that is unemployed
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Equation for unemployment rate
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(# of unemployed/ labor force) x 100
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Labor force participation rate
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% of the adult population that is in the labor force
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Labor force participation rate equation
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(labor force/adult population) x 100
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Unemployment rate good measure?
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Useful but not perfect, hard to distinguish between a person who is unemployed and a person not in the labor force (ex.-discouraged worker)
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Marginally attached workers
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Ppl who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked or work sometime in the recent past
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Discouraged workers
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Marginally attached workers who have given a job market related reason for not currently looking for a job
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Persons employed part time for economic reasons
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Want and are available for full time work but have had to settle for a part time schedule
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Frictional unemployment
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Caused by the inability to synchronize job endings with job beginnings, (short term)
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Structural unemployment
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Caused by mismatching of jobs and worker skills, number of jobs is insufficient for number of workers (long term)
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