AUECO102 Lecture Notes - Lecture 5: Business Cycle, Unemployment Benefits, Market Power
17 Jan 2019
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Identifying unemployment: the problem of unemployment is usually divided into two categories- the long-run problem and the short-run problem, the natural rate of unemployment, the cyclical rate of unemployment. Natural rate of unemployment: unemployment that does not go away on its own even in the long run, the amount of unemployment that the economy normally experiences. Cyclical unemployment: year-to-year fluctuations in unemployment around its natural rate, associated with short-term ups and downs of the business cycle. Unemployment is measured by statistics canada it surveys 50,000 randomly selected households every month: the survey is called the labor force survey. Based on the answers to the survey questions, statistics canada states 3 categories in the adult population as below: employed, unemployed, not in the labor force. Statistics canada considers a person an adult if he or she is over 15 years old.
