ECON 203 Lecture Notes - Lecture 6: Full Employment, Business Cycle, Structural Unemployment

• School: University of Calgary
• Department: Economics
• Course: ECON 203
• Professor: Peter Tracey

Document Summary

Y = c + i + g + nx. Real gdp= expenditure (what consumers spend) + investment (business spending) + government spending + exports (spending by foreigners spend) First midterm deals with chapter 4 and 5. Very important for the test to know equations don"t memorize numbers. Therefore unemployment rate = (unemployed / labour force ) x 100 = Labour force participation rate. (labour force / working age population) x 100 = Employed people / working age population x 100 = 17,986,800 / 29,401,200 x 100 = 61. 2% of the population. These types are not mutually exclusive and have overlap: frictional unemployment -> short term unemployment that arises from the process of matching workers with jobs. Government tries to retrain them for modern work. Government doesn"t have a great record in this regard. Donald trump says he wants all jobs that were outsourced to come back to the us, if the industries return that means more americans will have jobs.