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Definition
| Study of aggregate moods of economy |
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| LR growth framework focuses on... |
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| SR business cycle focuses on... |
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| the market value of final goods and services produced in an economy, stated in the prices of a given year |
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Definition
| real GDP / total population |
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Definition
| producing more stuff in 1 pd than in previous pd |
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Definition
| downward/upward movement of economic activity, or real GDP, that occurs around the growth trend |
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Definition
| a decline in real output that persists for more than 2 consecutive quarters of a year |
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| 2 consecutive quarters of negative growth (less than last quarter) |
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Definition
| pd of time when we are growing below our long-term rate. |
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Definition
| large recession; usually if unemployment exceeds 12% for more than 1 year |
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| upturn that lasts at least 2 consecutive quarters |
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| # of people in economy who are willing and able to work but who are not. is counter-cyclical |
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Definition
| any work for pay; worked in own business, farm, profession; self-employed; worked w/o pay less than 15 hours in family business, farm; temporary absence b/c of illness; vacation; bad weather; personal; strikes |
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Definition
| available for work; actively seeking employment |
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| Not in labor force: groups |
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Definition
| retirees; full-time students; housewives; disabled; discouraged workers (have not looked in greater than 4 wks but wants work) |
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| unemployment rate calculation |
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Definition
| # unemployed / labor force x 100 |
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| labor force participation rate |
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Definition
| labor force / working age population |
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Term
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Definition
the good/ok. we are not omniscient.
Caused by new entrants into the job market and people quitting a job just long enough to look and find another.
short-term. Desirable (we want job that best fits our skills, co. wants best employee).
Inevitable.
Based on individuals and businesses. |
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Term
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Definition
the bad.
Caused by institutional structure of an economy or by economic restructuring making some skills obsolete.
undesirable.
Long-term because potential worker and job don't have skills that match. ex) wheat mill closes, only jobs open are in health. Or geographical difference.
Industry-wide/regional.
Industry is created before skills are (technology).
Policies: 1) job retraining programs, technical/community college, 2) tax breaks for moving 50+ miles. |
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Term
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Definition
the ugly.
Resulting from fluctuations in economic activity.
Short or long-term.
Very undesirable.
Related to recessions. person not employed, available, seeking, but no job openings; more workers willing to sell services, but no buyers = surplus in labor market.
Policies: creating jobs. |
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Term
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Definition
Changes of unemployment during yearly seasons.
Person available, looking, but no job opening, but jobs come back next season.
short-term, inevitable, adjustments.
Ex) ski resorts, construction, tourism, Christmas. |
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