1 / 6

Unemployment Supplement to Reffonomics

Unemployment Supplement to Reffonomics. Clarifications. “Full-Employment Unemployment Rate” A.K.A. “Natural Rate of Unemployment” Full-Employment is achieved when there is zero CYCLICAL unemployment There is always some degree of Structural and Frictional Unemployment!

miller
Télécharger la présentation

Unemployment Supplement to Reffonomics

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unemployment Supplement to Reffonomics

  2. Clarifications • “Full-Employment Unemployment Rate” • A.K.A. “Natural Rate of Unemployment” • Full-Employment is achieved when there is zero CYCLICAL unemployment • There is always some degree of Structural and Frictional Unemployment! • So, even if the Natural rate of unemployment is 4%, if there is currently zero cyclical unemployment, then the economy is said to be “fully-employed.”

  3. Delaware unemployment rate: August of 2001 through August of 2010 Year-beginning in 2001

  4. Delaware Unemployment Data as of August 2010 • Civilian Labor Force: 422,700 • Employed persons: 386,800 • Unemployed persons: 35,300 • Unemployment Rate: (Unemployed persons / Civilian labor force) X 100 = 8.35% • Population of Delaware: 885,122 (2009 est.)

  5. Economic Costs of Unemployment • GDP Gap – the difference that exists between actual GDP and potential GDP as a result of fluctuations in unemployment and it’s effect on production.

  6. Okun’s Law • Establishes a relationship between unemployment rate and GDP gap. • “for every 1 percentage point which the actual unemployment rate exceeds the natural rate, a GDP gap of about 2 percent occurs.” • NOT A TRUE LAW! Not accurate 100% of cases.

More Related