Business Cycles, Unemployment, Infation Ch. 14

I. Business Cycles Ups/Downs of GDP Recession Peak Trough Expansion Depression

II. Business Cycle Causes Capital Expenditures Inventory Adjustments Innovation & Imitation Monetary Factors External Shocks

III. Unemployment Unemployed Unemployment Rate Discouraged workers underemployed

E. Frictional Unemployment “Between Jobs”

F. Structural Unemployment

G. Cyclical Unemployment

H. Seasonal Unemployment

I. Technological Unemployment Automation

J. Full Employment Lowest possible unemployment rategrowing economyFOP being used efficiently

IV. Inflation A. Increase in prices & a fall in the purchasing value of $$$.