FNCE 101 Midterm: Cheat Sheet FNCE 101
Document Summary
Increase in real wage: temporary increase = weak income effect. > labor supply increases: permanent increase = strong income effect. Labor supply curve: factors that shift curve: 1) wealth 2) expected future supply curve. Unemployment: current population survey (cps): sunday to saturday containing. 12th day of month; conducted during week following reference week; about 60k households surveyed; labor force = civilian non-institutional popul. aged 15 or older labor force stats. are for. 2)2) was available for work (except temp. illness); 3) made effort to find employment during 4-week period ending in reference week (and not waiting to start job) Interesting unemployment facts: a) most spells are short; b) on any day, most unemployed people are in long spells. Natural unemployment rate: ( frictional; structural: prod. funct. 2% of the full-employment level of output (y-bar). Price indexes (p): gdp deflator; pce deflator; cpi.
