ECON102 Lecture Notes - Lecture 10: Labour Force Survey, Real Wages, Equilibrium Point

• School: University of Waterloo
• Department: Economics
• Course: ECON102
• Professor: v

Document Summary

Use real gdp to measure our standard of living: real gdp per person. A younger or older population will influence the number of new seekiers and the amount of fictional unemployment. If technological change is a swift and foreign competition is fierce; structural unemployment will be high. The real wage rates that bring unemployment are: minimum wage. As mandated by the government: efficiency wage encourage hard work and discourage worker turnover, As selected by the firm to attract a better applicant pool, These wages will bring unemployment if they are set above the market equilibrium wage. Unemployment: when the supply of workers is greater than the demand for workers. The only scenario for unemployment is if the wage is above the equilibrium point. Money wages will be reduced in inflationary periods so workers are worse off. The higher price is higher income for the employer, they are better off.