Macroeconomics - CH23 Unemployment and Inflation
Macroeconomics - CH23 Unemployment and Inflation
Macroeconomics - CH23 Unemployment and Inflation
Set of flashcards Details
| Flashcards | 42 |
|---|---|
| Language | English |
| Category | Macro-Economics |
| Level | University |
| Created / Updated | 04.10.2020 / 04.10.2020 |
| Licencing | Not defined |
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Explain the terms emplyoment and unemlployment
Employment is the number of people currently employed in the economy, either full time or part time. On the other hand, unemployment is defined as the total number of people who are actively looking for work but aren’t currently employed. That means, just because a person isn’t working doesn’t mean that we consider that person unemployed
Explain the term labor force and the labor force participation rate
A country’s labor force is the sum of employment and unemployment, whereas the labor force participation rate is the percentage of the population aged 16 or older that is in the labor force (either employed or unemployed).
Explain the term unemployment rate
The unemployment rate is the percentage of the total number of people in the labor force who are unemployed.
Explain why it is impossible, that the unemployment rate falls to zero.
If you are searching for work, it’s normal to take at least a few weeks to find a suitable job. Yet a worker who is quite confident of finding a job, but has not yet accepted a position, is counted as unemployed. As a consequence, the unemployment rate never falls to zero, even in boom times when jobs are plentiful.
