ECON 1051 1nd Edition Lecture 37 Outline of Last Lecture I. Outcome to Apple/Samsung GameII. Game Theory ExampleOutline of Current Lecture I. Job TermsII. Unemployment Current LectureI. Job Termsa. Labor Forcei. The sum of employed and unemployed workers in the economy 1. Labor force participation rate measures the percentage of the working-age population in the labor force 2. (Labor force/working-age population) x 100 b. Unemployment Rate i. The percentage of the labor force that is unemployed 1. (Number of unemployed/labor force) x 100c. Discouraged Workersi. People who are available for work but have not looked for a job during the previous four weeks because they believe no jobs are available for them II. Unemployment a. Frictional unemployment i. Short-term unemployment that arises from the process of matching workers with jobsb. Seasonal unemploymenti. Refers to unemployment due to factors such as weather, variations in tourism, and other calendar-related events 1. Because seasonal unemployment can make the unemployment rate seem artificially high during some months and artificially low during others, the BLS reports two unemployment rates each month. One is seasonally adjusted and one that is not. c. Structural unemployment These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.i. Unemployment that arises from a persistent mismatch between the skills and attributes of workers and the requirements of jobsd. Cyclical unemploymenti. Unemployment causes by a business cycle recession e. Full Employment i. When the only remaining unemployment is structural and frictional unemployment 1. Natural rate of unemploymenta. The normal rate of unemployment, consisting of frictional unemployment plus structural unemployment b. Sometimes called the full-employment rate of
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