[MACRO] 03 - Long-Run and Short-Run Concerns Flashcards
Definition: Productivity Growth
The growth rate of output per worker.
Definition: Employed
Any person 16 years old or older who works for pay, either for someone else or in his or her own business for 1 or more hours per week; who works without pay for 15 or more hours per week in a family enterprise; or who has a job but has been temporarily absent, with or without pay.
Definition: Unemployed
A person older than 16 years who is not working, is available to work and has made specific efforts to find work during the previous 4 weeks.
Definition: Not in the Labour Force
A person who is not looking for work, because he or she either does not want a job or has given up looking.
Definition: Labour Force
Number of people employed plus the number of unemployed.
Definition: Unemployment Rate
The ratio of the number of people unemployed to the total number of people in the labor force.
Definition: Labour Force Participation Rate
The ratio of the labour force to the total population older than 16 years.
Definition: Discouraged-Worker effect
The decline in the measured unemployment rate that results when people who want to work but cannot find jobs grow discouraged and stop looking, thus dropping out of the ranks of the unemployed and the labour force.
Types of Unemployment (4)
1) Frictional Unemployment
2) Structural Unemployment
3) Cyclical Unemployment
4) Natural Unemployment
Definition: Frictional Unemployment
Due to the normal working of the labour market; used to denote short-run job/skill matching.
Definition: Structural Unemployment
Due to changes oin the structure of the economy that result in a significant loss of jobs in certain industries,
Definition: Natural Unemployment
Occurs as a normal part of the functioning of the economy. Sometimes taken as the sum of pfrictional unemployment and structural unemployment.
Definition: Cyclical Unemployment
Caused by the business cycle during recessions and depressions.
