Chapter 9

Question 1

What is this chapter about?

Answer 1

Understanding situations, and how a policy would work through the economy to help the situation

Question 2

What are the types of unemployment?

Answer 2

Frictional
-Voluntarily out of work
-switching jobs, higher paying more productive job
-Government can set up job centers, ex Canada Employment Centres; these might match someone with a job they will be more productive at

Structural
-Involuntary
-Due to globalization, technological advances, changes in consumer preferences
-Requires reeducation, retraining, skills development
-Gov. can assist in geographical relocation to work

Cyclical
-Based on the business cycle
-need to move out of a recession
-Use expansionary fiscal policy- increase G and/or reduce T, provincial/federal
you can also use expansionary monetary policy- reduce interest rates, increases I and C, increases GDP

Question 3

Who makes up the labour force?

Answer 3

Those older than 15 who are unemployed looking for employment, or are currently employed

Question 4

what is the formula for labour force

Answer 4

LF = U + E

labour force = Unemployed + Employed

Question 5

Who is not included in calculating labour force

Answer 5

people in Nunavut, Yukon, NWT

Armed forces- only concerned civilian labour hours
People in jail, hospitals, nursing homes
People on reserves

Question 6

what is the formula for unemployment rate

Answer 6

U rate = U/LF *100

Question 7

Labour Force Participation rate (Part Rate) formula

Answer 7

Part Rate = LF/WAP * 100

WAP= working age population

Typically populations that are younger have a better rate