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. !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!Lecture!7!!Outline(of(Last(Lecture((I. Production!Process!a. Organization!of!the!Production!Process!II. Labor!III. Capital!IV. Increasing!Output!!V. Division!of!Labor!VI. Diminishing!Marginal!Theory!!Outline(of(Current(Lecture((II. Unemployment!a. How!does!unemployment!impact!people?!!III. Unemployment!Rate!!IV. Labor!Force!a. Discouraged!Workers!b. Underemployed!V. Production!Possibilities!Curve!VI. LongITerm!Unemployment!a. Full!Employment!!b. 4!Ways!to!Define!Unemployment!i. Seasonal!!ii. Frictional!iii. Structural!iv. Cyclical!Current(Lecture!1) Unemployment!Rate:!The!percentage!of!people!who!don’t!have!jobs.(a. #Unemployed!/!Labor!Force(2) Labor!Force:!Everyone!over!the!ages!of!16!who!work!or!are!actively!looking!for!a!job.(a. People!who!AREN’T!a!part!of!the!Labor!Force(i. Stay!at!Home!Parents(ii. People!under!16(iii. Retired!People(iv. People!who!have!given!up!on!looking!for!a!job(b. PartITime!Employment!is!problematic!for!calculating!the!unemployment!rate.(c. The!Labor!Force!is!about!half!of!the!American!population!(roughly).(!!((((((ECON(104(((11th(Edition(! !3) Discouraged!Workers:!People!who!look!for!work!but!can’t!find!it.(4) Underemployed:!People!who!work!at!jobs!that!they!are!over!qualified!for.!(EX:!Neurosurgeon!flipping!burgers!at!McDonalds)(5) Production!Possibilities!Curve:!((((((( ((These!Images!were!taken!from!Goggle)!a. The!issue!isn’t!pushing!the!Production!Possibility!Frontier!out,!but!getting!to!the!Production!Possibility!Frontier.(b. We!will!NEVER!have!0%!unemployment!(6) In!Macroeconomics,!when!unemployment!increases:(a. Decline!of!GDP!Growth(b. Loss!of!Output(c. Loss!of!Income(7) LongITerm!Unemployment!has!a!devastating!impact!on!the!individual!and!their!family.(8) 4!Ways!to!Define!Unemployment:(a. Seasonal![Ex:!Agricultural,!Lifeguard,!Etc.](b. Frictional:!Leaving!one!job!for!another;!In!between!jobs;!Just!entering!the!job!Labor!Force(Qualifiers(of(Frictional(i. Assume!that!there’s!enough!jobs!for!you!to!do(ii. Have!the!required!skill!set(iii. Job!search!will!be!short(c. Structural:!Caused!by!1)!MissedImatched!of!jobs!available!and!2)!The!skill!set!of!!!!!!!!!!!!!workers!or!Locations!of!jobs!vs.!Location!of!workers!d. Cyclical:!Unemployment!as!a!result!of!a!downturn!in!the!economy!!i. Requires!an!injection!of!income!to!spark!up!employment!e. Full!Employment:!Structural!and!Cyclical!Unemployment!are!near!0%!! !i.
View Full Document