Economics: The Business Cycle, Unemployment & Inflation
4 views 0 purchase
Course
Economics: Macroeconomics (ECO221)
Institution
The University Of Sint Maarten
Book
Economics: Principles & Policy
Full lesson including notes, simple definitions, examples, and graphs.
Ch 8:
Topics:
Business Cycle
Stages of Business Cycle
Labor Force
Unemployment
Types of Unemployment
Costs of Unemployment
Inflation
Costs of Inflation
Types of Inflation
ECONOMICS: PRINCIPLES & POLICY 14TH EDITION BY WILLIAM BAUMOL SOLUTIONS AND TEST BANK QUESTIONS AND CORRECT ANSWERS 2024
Test Bank For Economics: Principles & Policy - 14th - 2020 All Chapters - 9781337696326
Economics: Fiscal and Monetary Policy
All for this textbook (11)
Written for
The University of Sint Maarten
Economics: Macroeconomics (ECO221)
All documents for this subject (9)
Seller
Follow
BizNotesSupplies2021
Reviews received
Content preview
Economics 8: The Business Cycle & Inflation
Business cycles: fluctuations in real GDP and employment market economies experience over
time
Stages of business cycle:
Recession: When real GDP falls for two
consecutive quarters
Expansion: Occurs when output is rising
Peak: The point of a business cycle at which
expansion ends and a recession begins
Trough: The point of a business cycle when a
recession ends and an expansion begins
Depression: severe recession
Labor force: consist of noninstitutionalized persons
aged 16 or above who are working or seeking work
Persons are unemployed if they are not working for pay but are seeking work
Unemployment defined:
Unemployment rate rises during recessions and
falls during expansions
Discouraged workers: unemployed workers who become
discouraged (declines unemployment rate)
Labor force participation rate increases during expansions
and decreases during recessions
Underemployed workers (part-time) are considered employed, understating the
problem of unemployment. Unemployment may be overstated by underground
economy.
Types of unemployment:
Seasonal: workers in industries with seasonal variations in demand for labor (primary
school teachers)
Frictional: workers looking for their first job, or who quit their jobs to find a better job
(search unemployment)
Structural: workers lose jobs due to technological changes or changes in the demand for
final output
Cyclical: people who lose their jobs because economy enters a recession
Costs of unemployment experienced by society as increases in suicide rates, alcohol abuse,
crime
GDP gap: major cost
Psychological costs for unemployed workers and families
Before women had higher unemployment rates than men
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller BizNotesSupplies2021. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.49. You're not tied to anything after your purchase.
