Unemployment
- “A number of people who are interested finding a job but currently do not have one”
- “Total number of adults (aged 16 years or older) willing and able to work and who are actively looking for work and have not found a job”
Types of Unemployment
- Frictional Unemployment
- Structural Unemployment
- Seasonal Unemployment
- Technological Unemployment
Unemployment Rate
- Labor force = The employed + The unemployed
- Unemployment rate =Unemployed/Labor force x 100
Full Employment
- Natural rate of unemployment (NRU)
- NOT zero unemployment
- Occurs when the numbers of job seekers equals the numbers of job vacancies
- Not automatic
- Varies over time
Inflation
- “An continuous increase in price level without increases in good and services in economic cycle”
Types of Inflation
- Demand force inflation
- Cost increases inflation
- Import price inflation
Phillips Curve
- expressed a statistical relationship between the rate of growth of money wages and unemployment.
- unemployment will increases when inflation rate decreases.
Stagflation
-
“An increase in price and unemployment continuously”