ECN 204 Lecture Notes - Lecture 3: Potential Output, National Research Universal Reactor, Homicide
3 Feb 2017
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Monetary factors (oil prices = inflation, change in money supply) Financial instability (canadian markets depend on us market, export chain) When in financial struggles, will delay the purchase of durable goods. When in struggle, will focus on using money for non-durable goods. Unemploymment rate = # of unemployed/labour force x100. Actively searching for a job but have no job. Looking for jobs but can"t find any so they give up (not considered unemployeed because they"re not actively searching anymore) Workers voluntarily changing jobs and temporary layoffs. Ex: thousands of people used to work in manufacturing sector but now technology can do your job. At nru, economy is at potential gdp. Occurs when there is no cyclical unemployment. Gdp gam = actual gdp - potential gdp (part of gdp where cyclical gdp = 0) Every 1% of cyclical unemployment creates a 2% gdp gap. 8. 3% - 6. 5% = -14. 8% 1. 8% (gam in % terms)
