Economic growth
What does per capita mean?
per head
What is unemployment rate?
percentage of the labor force that is looking for a job but can't find one
What is cyclical unemployment?
unemployment due to the business cycle
What is a peak?
the most economic activity in a business cycle
What 2 things affect average labor productivity?
-natural resources
-tech knowledge,
What is output per person called?
GDP per capita
Who makes up the labor force?
employed + unemployed
What is structural unemployment?
a mismatch between worker's skills and what employers need
What is a recession?
period between a peak and trough
Economists make GDP calculations for what time contexts?
Annually
GDP per capita and quality of life measurements are ___ly correlated
positively
When the unemployment rate is up it's easier/harder to find work
harder
What is frictional unemployment?
unemployed people who are looking for jobs and will get one quick
What is a depression?
a severe recession
What is UK GDP per capita approximately?
Around £40,000
What is total output divided by number of workers?
What is total output divided by number of workers?
During a recession what happens to unemployment?
increases
What is the natural rate of unemployment in the Uk?
Around 13%
During a recession what do employment and inflation do?
they both decrease
Why is Saudi Arabia so rich?
natural resources
One common reason for rising levels of production is
One common reason for rising levels of production is
Why does the unemployment rate never reach 0?
there's always people looking for a new job
What was the max unemployment rate in UK history?
What is a trough?
The least economic activity in the business cycle.
What are the 3 limits of GDP?
– what counts as final goods?
– it doesn't include non-market goods
– ignores depreciation