DEFINITIONS
What is unemployment?
Individuals capable of working and actively seeking employment are unable to find jobs.
Types of unemployment.
Disguised, Classical, Cyclical, Structural, Seasonal, Natural and Frictional
List 2 cost of unemployment.
Economic Cost:
Effect on Income
Effect on Output
Effect of Economic Growth
Financial Burdens
Social Cost
Goods and services that are desired to improve the quality of life but are non-essential.
What are wants?
What is inflation?
When the level of prices of goods & services rises over time.
Types of Inflation.
Demand-Pull
Cost-Push
Built-In/Wage-Price
3 Causes of unemployment.
Growing population
Jobs being low in supply
Lack of skills
Slow economic growth
Lack of investments
Goods and services that are essential for life.
What are needs?
What is underemployment?
Individuals are employed but not fully utilizing their skills.
Difference between unemployment and underemployment.
Unemployment refers to being without a job while actively seeking work while Underemployment is when individuals are employed but do not fully utilize their skills, qualifications or availability.
What is Demand-Pull inflation?
When aggregate demand exceeds aggregate supply.
What is opportunity cost?
What is the Labour Force?
The total of employed and unemployed individuals seeking work.
Difference between real and nominal variables.
Real variables are the amount after adjusting for inflation while Nominal economic variables are measured in monetary terms.
# of people unemployed
_____________________ x 100
# of people in the labour force
Formula for unemployment rate.
An economic condition where the demand for a good/service is greater than the availability of the good/service.
What is scarcity?
What is the Phillips Curve?
The inverse relationship between the rate of inflation and the rate of unemployment within an economy.
Policies used to combat Inflation.
Monetary
Income
Fiscal
Supply Side Measure
What is Fiscal policy?
The use of government spending and taxation to influence economic conditions in a country.
The system that the society or a country uses to produce, distribute and consume goods and services.
What is the economy?