Economics Unemployment and Inflation
Terms
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- frictional unemployment
- unemployment that occurs when people take time to find a job :)
- seasonal unemployment
- unemployment that occurs because of harvest schedules or vacations, or when industries slow or shut down for a season :|
- structural unemployment
- unemployment that occurs when workers’ skills do not match the jobs that are available :)
- cyclical unemployment
- unemployment that rises during economic downturns and falls when the economy improves when the economy improves :(
- underemployment
- working at a job for which one is over-qualified or working part-time when full-time work is desired :(
- discouraged workers (hidden unemployment)
- a person who wants a jobs but has given up looking
- cost-push inflation
- inflation that occurs when demand for goods and services exceeds existing supplies
- cost push inflation
- inflation that occurs when producers raise prices in order to meet increased costs (shift to lower supply curve)
- Phillips Curve
- high inflation and low unemployment, low inflation and high unemployment. negative straight line
- stagflation
- high inflation and high unemployment: must deal with inflation first
- demand-side economics
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-Keneysian economics
-If government spends money, this will increase demand and GNP
-cyclically balancing the budget by using business cycle to your advantage - supply-side economics
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-trickle down theory
-Laffer curve
-belief that tax cuts can help an economy by raising supply - business cycle
- a period of expansion followed by contraction, review chart
- federal deficit/surplus
- when the government is in debt/has extra money
- GNP=
- I(businesses)+ C(consumers) + G (government) + (X-M) (imports-exports)