ECN 204 Lecture Notes - Lecture 4: Blue-Collar Worker, Homicide, Shortage
22 Feb 2017
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Document Summary
Recall: declines in output and unemployment are characteristics of a recession, unemployment rate is a key labour market indicator, unemployment is often overstated because some people are not willing to work and/ or are not actively seeking work. Causation: irregular innovation, productivity changes - productivity is the output per unit of output; increase in productivity is a boom; decrease in productivity is a bust, monetary factors, political events, nancial instability causes unexpected nancial bubbles or bursts. Capital goods - plant, equipment, factories, machinery, inventories. Consumer goods affected less by the business cycle. Unemployment rate = # of unemployed * 100 labour force: the percentage of the labour force that is unemployed, understated by part-time employment statistics and does not include discouraged workers, use unemployment rates and participation rates. Frictional unemployment: caused by workers voluntarily changing jobs and by temporary layoffs, unemployed workers between jobs, normal type of unemployment, signals mobility in the labour market.
