ECON 222 Lecture 10: Part 2 Notes
Document Summary
Unemployment rate (u-rate: cps (current population survey) is a monthly survey of ~60,000 households conducted by the bureau of the census for the bls (bureau of labor statistics, based on adult population (16+) Actual u-rate= fu rate + su rate + cu rate. Cu rate= actual u-rate - nrou: full employment: actual u-rate = nrou, cu rate= 0% Misery index: economic indicator created by economist arthurt okun, mi= u-rate + inflation rate. Index helps determine how the average citizen is doing economically. Money- set of assets in the economy that people regularly use to buy goods and services from each other. Functions of money: money serves as a method of exchange, money serves as a store of value, money serves as a unit of account. M1: currency in circulation + traveler"s checks + demand deposits + other checkable bank deposits. M2: m1 + savings deposits + small time deposits + money market mutual funds + miscellaneous categories of m2.
