GDP & Inflation
What is time lag in SSP (Supply side policy)
Effect of policy seen in long term.
At what point does cyclical unemployment become structural"
When workers who are unemployed during a recession need to develop new skills to become employable
What are the two situations in which underemployment can occur
When workers who are highly skilled that are placed in low-skill jobs
When part-time workers would prefer to be working full-time.
What type of unemployment can become structural? How?
Cyclical
What concept laffer curve explained ?
Relationship between Tax rate and Tax revenue
A period in time defined by a fall in GDP for 6 months
What is a recession/depression?
Mr. O'Connor thinks his skills would better be used as being an astronaut, he quits his job. What type of UE is this?
Frictional UE
What do you call Outdated jobs due to no longer needing a certain skill set
Structural unemployment
Give an example of who is not included in the labour force
Retirees, stay-at-home moms, full-time students...
1929 great depression, many people lost their jobs is a example of which type of unemployment .
Cyclical unemployment
What do you call GDP adjusted for inflation
What is real GDP?
UE caused by a recession or a dip in the business cycle
What is Cyclical UE?
The Fed can implement _______ policy, to help the economy.
What is Monetary?
Supply-side economics can theoretically deal with high inflation and high UE something that Keynesian Economics cannot... What is this situation called?
Stagflation!
Unemployment rate is difficult to maintain.
What is the business cycle?
When prices go down and begin a vicious cycle of producers making less and people buying less.
What is Deflation?
This type of UE is characterized by an industry going out of business
What is Structural UE?
What is the formula for unemployment rate?
Unemployed
_____________ * 100
Labour force
A prime feature of supply side economics is....
Lowering Tax Rates!
Deregulating markets!
The x-axis and y-axis label for the business cycle graph
Time on x-axis and GDP on y-axis
This economic problem occurred in Zimbabwe in 2007-2009 causing them to abandon their currency.
What is Hyperinflation?
Full Employment has a UE rate of what %?
What is 2-6%
Phillips curve shows the inverse relationship between __________ and _______________
Unemployment and Inflation
Supply-side economics replaced ________ economics as a response during recessions because doing nothing is politically unpopular.
What is classical economics!
a condition of the national economy, where all or nearly all persons willing and able to work at the prevailing wages and working conditions are able to do so.
What is Full Employment