Chapter 13
Unemployment
Unemployment
A nation’s unemployment rate is an important indicator of the health of the economy.
The ______polls a sample of the population to determine how many people are employed and unemployed.
The ______is the percentage of the nation’s labor force that is unemployed.
The unemployment rate is only a ______. It does not reflect regional economic trends.
The labor force is composed of civilians age ______who ______for a job.
Some types have ______consequences for the economy and the workers than others.
Types of Unemployment
Frictional Unemployment
Occurs when:
Structural Unemployment
Occurs when:
Seasonal Unemployment
Occurs when:
Cyclical Unemployment:
Full Employment
Economists generally agree that in an economy that is working properly, an unemployment rate of around ______.
Sometimes people are ______, that is working a job for which they are over-qualified, or working part-time when they desire full-time work.
______are people who want a job, but have given up looking for one.
Full employment is the level of employment reached when there is no ______
Inflation
Aggregate means total
Aggregate Supply- total goods and services produced throughout the economy.
Aggregate Demand- total amount of spending throughout the economy.
The Effects of Rising Prices
Inflation is ______.
Purchasing power, the ability to purchase goods and services, is ______.
Price level is the ______at a given point in time
Price Indexes
A price index is a measurement that shows how the average price of a standard group of goods changes over time.
The consumer price index (CPI) is computed each month by the ______.
CPI is determined by measuring the price of a ______meant to represent the typical “______” of an urban consumer.
Changes in the CPI from month to month help economists measure the economy’s ______.
The inflation rate is the ______.
leads to inflation.
Types of inflation
Inflation means that ______exceeds ______
Inflation- When ______increases faster than ______. An increase in overall prices.
This can happen because of the following reasons: ______.
Deflation- when ______decreases more rapidly than ______. So sellers are forced to ______prices to attract buyers.
Hyperinflation: Inflation that is ______.
Causes of Inflation
Demand-Pull Theory – ______
Cost-Push Theory – ______
Effects of Inflation
A.
B.
C.
D.
E.
What group is MOST affected by inflation? ______
GDP - ______
GDP per capita - ______
GDP growth rate - ______
CPI - ______
Wage-Price spiral - ______
Poverty
______: This is a measure of the level of income necessary to subsist in a society. Dependent on the cost of living and peoples' expectations. Usually defined by governments and calculated as that level of income at which a ______of its income to basic necessities such as food, water, shelter, and clothing
Causes of Poverty:
- ______
- ______
- ______
- ______