What is unemployment?
Unemployment- “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
formula
Labor force = The employed + The unemployed
Unemployment rate = Unemployed/Labor force x 100
Example calculating the unemployment rate
What is inflation?
Inflation: “An continuous increase in price level without increases in good and services in economic cycle”
Types of Inflation:
i) Demand force inflation
ii) Cost increases inflation
iii) Import price inflation
What is Phillips curve?
Phillips curve :
-expressed a statistical relationship between the rate of growth of money wages and unemployment.
-unemployment will increases when inflation rate decreases.
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What is stagflation?
“An increase in price and unemployment continuously”
Reflection- Macroeco Chp 3- Unemployment & Inflation
From this chapter, i learn there are 4 type of unemployment and we calculate unemployment rate with the formula. Unemployment rate of a country can be calculated and it can encourage government to do some action to reduce unemployment rate. There are also 3 type of inflation which is demand force inflation, cost increase inflation and import price inflation.