ECO 1002: Introduction to Macroeconomics - Unemployment

These flashcards cover key concepts related to the unemployment topic in macroeconomics, including definitions, calculations, and types of unemployment.

The formula for GDP is __.

C + I + G + (X − M)

The Unemployment Rate (UR) is calculated as __.

(Unemployed People / Labor Force) × 100%

The total of unemployed and employed individuals is known as the __.

Labor Force

Individuals not currently working or seeking employment, such as students or stay-at-home spouses are classified as __.

Out of the Labor Force

The Labor Force Participation Rate (LFPR) is calculated as __.

(Labor Force / Adult Population) × 100%

A significant issue with the unemployment rate is the lack of distinction between and workers.

full-time and part-time

Cyclical unemployment occurs due to __ in the economy, affecting the demand for labor.

fluctuations

Frictional unemployment arises from __ between jobs.

worker transitions

unemployment results from permanent changes in industries and technologies.

Structural

When the economy is at Full Employment, the unemployment rate is at the __.

Natural Unemployment Rate