Introduction to Business Lecture Notes:Unemployment:Unemployment rate- Anyone who is at least 16 years old and has been looking for a job for at least four weeks or more. The four weeks or more is factored into calculating unemployment rate.Four Types of Unemployment:-Frictional-People have quit their job voluntarily-Structural-Businesses have restructured and laid off a lot of people.-Cyclical-Due to downturn in economy, such as a recession.-Seasonal-When seasonal workers are out of jobs because that particular season is over.*You always find a certain level of unemployment. A good rate is 5%.Inflation:The general rise in prices-Disinflation-When prices are falling, but there is still less demand or less economic activity.-Deflation-When prices are rising even though there is less economic activity. -Stagflation-When prices are rising even though there is less economic activity (less demand).Consumer Price Index (CPI):Measures the level in inflation-The wages, rent/leases, tax brackets, government benefits and interest rates of some citizens are based upon the CPI.-To help fix this, government increases benefits.Producer Price Index (PPI):Measurers level of inflation at the wholesale level.-Industry parts and material prices have increased or not.Business Cycle:-Periodic rises and falls that occur in economies over time.Four Phases of Long-Term Business Cycle:1.Economic Boom2. Recession3. Depression4. Recovery*During the recession: GDP falls for two consecutive quarters. Then a recession is declared.Fiscal Policy:-The government wants economy to move at a stable rate. Hyperinflation occurs if rate happens too quickly.-If the rate is too high or too low, government uses fiscal policy or monetary policy.The Fiscal Policy is when government adjusts taxes to better suit the economy.Tools of Fiscal Policy:-Taxation-Government spending through programs*With higher inflation, government raises taxes to slow it down.*During a recession, taxes are lowered.Fiscal policy is not the government’s number one tool!The Monetary Policy is the number one.National Deficits, Debt and Surplus:-National Deficit- Built when government spends more money than what is receives. -National Debt- Treasury bills, Bonds, and Notes.-National Surplus- Government receives more than it spends.Monetary Policy:-Used by Federal Reserve Bank (Central Bank of the United States)-Feds manage economy by tempering with interest