Ag_Econ 1042 1st Edition Lecture 8 Outline of Last Lecture I. Economic Growtha. The Compounding Rule of 70II. ProductivityIII. The Convergence TheoryIV. Promoting GrowthV. The Juggling ActOutline of Current Lecture I. Unemployment and Its FactorsII. Measuring UnemploymentIII. LimitationsCurrent LectureI. Unemployment and Its FactorsTo be unemployed means to be in a situation where an individual does not have a job, but is looking and applying for one. According to the Bureau of Labor Statistics there are 3 requirements to be considered unemployed. There requirements are thatthe individual cannot have worked in the last week, are available to work if offered a job and lastly, they are making efforts to find a job. Then, there are the other people who either have a job or they do not and or not desire to have one. In order to determine the unemployment rate, the number of unemployed is dividedby the number of individual that are in the labor force. The labor force includes people who are at working age and are either employed or unemployed. That quotient is then multiplied by one hundred to get the percentage of unemployed.II. Measuring UnemploymentThere are three categories of employment. They are employed, unemployed or not in the labor force. All of these numbers can be used to determine unemployment rates of different groups of people. For example, the unemployment rate of each 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.gender, race, education level and much more can be determined. Also, one can see what state the economy is in by determining the labor-force participation rate, whichis the quotient of the labor force divided by the working age population multiplied by one hundred. This determines the fraction of the working age population that wants to work.III. LimitationsThere are two major limitations to unemployment rates. They are discouraged workers and underemployed workers. Discouraged workers are people who have been looking for jobs but have not had any luck so they have given up due to the conditions of the labor market. Then there are underemployed workers. There are people who are working less hours than they would like or they have a higher skill level than their current job calls