Dont they know, its the end of the world, it ended when you said,

Goodbye.

Cyclical Unemployment

Caused by direct change in output/ production (like a recession)

Structural unemployment

Workers skills are no longer needed (analog telephone operators)

Frictional Unemployment

time lag in hiring process, voluntary leaving

Seasonal Unemployment

Unemployment that happens during particular seasons

Full Employment

: Cyclical unemployment = 0% or y bar

CPI Substitution Bias

bias that occurs when the consumer price index (CPI) fails to accurately measure changes in the cost of living due to consumers substituting between goods and services in response to relative price changes.

CPI Outlet Bias

prices collected for the index may not accurately represent the full range of prices consumers face in the marketplace, due to only a limited set of retail outlets being included

CPI Quality Bias

CPI overstates the cost of living since some of the price increases it measures represent increases in value, not cost

GDP

Market value of all final goods and services produced for a marketplace during a given period of time within a country’s borders; stocks, bonds, and land are NOT gdp, also used goods don’t count either

Good

: Items you can gain ownership of, can be durable (last for years) or non

Service

: Intangible items we buy but don’t gain ownership of (Netflix, plumber, etc)

GDP Equation

C+I+G+NX (Exports- Imports

Consumption

Consists of goods and services purchased by individuals, largest percentage of GDP. ex: Rent is a service, food and a Iphone are goods

Investment

Goods and services bought by a firm

Government SPending

Goods and Services bought by the government

Net Exports

Exports - Imports

Non Residential Investment

Consists of capital; durable goods like tractors, office, software, furniture or machinery that can be used as productive inputs for further production

Residential investment

New homes, apartment buildings, non moving fixed assets

Change in private inventory

Unsold goods left in inventory

GDP Deflator

Measure of inflation in the prices of goods and services produced within a country.

CPI

Monthly change in price for a representative basket of goods and services important to consumers

Labor Force participation Rate equation

(Labor force / working age population) x 100

Involuntarily Part Time

Workers who wanna work more hours and are thus “partially” unemployed, usually ½ employed

UE with IPT equation

(UE + (0.5 * IPT)/Labor Force) * 100

Discouraged Workers

Workers who are not in the labor force (havent looked for job in past 4 weeks) but would take a job if offered

UE with Discouraged workers

(# of UE + # of Discouraged workers / Labor force + # of discouraged workers) x 100

Natural Rate of Unemployment

Cyclical + structural + seasonal unemployment