Unemployment + Inflation

Unemployment rate

(# of unemployed/# in labor force) * 100

Frictional Unemployment

Being between jobs, temporary unemployed. Qualified workers with transferable skills.

Seasonal Unemployment

Due to the time of year and the nature of the job

Structural unemployment

Change in employment that make some skills obsoleteT

Technological unemployment

Where automation and machinery replace workers

Cyclical unemployment

Caused from recession

Demand for labor falls, workers are fined

Labor force population rate

(labor force/adult pop) * 100

Deflation

Decrease in general price level

Creeping inflation

In range of 1% - 3% annually

Normal + healthy

Galloping inflation

Go as high as 100% - 300% annually

Rises very quickly

Hyperinflation

>500% a year

Prices increase really fast

Demand-pull Inflation

All sectors of the economy try to buy more goods and services than the economy can produce.

Cost-push inflation

Input costs drive production costs up

Inflation rate formula

(New price - old price) / (old price) * 100