Hand back tests and show midterm marks

Types of Unemployment Review

Frictional – someone is BETWEEN jobs. An accountant decides to change firms. Structural – the jobs are gone. The amount of oil jobs are declining. Seasonal – A worker works the same job each season. Frank always works at Hotel B in the summer. Cyclical – not enough money in the economy therefore not enough demand for products.

Independent Quiz Which type of Unemployment am I? 1.I am a ski instructor. I’m still looking for work, even though it is July, but I can’t find anything 2.I have just graduated from high school and am trying to find my first job. 3.I worked for a company that made vacuum tubes. Now I’ve been unemployed because the tubes have been replaced by transistors. 4.I was laid off when the recession hit our business.

The Economic Cycle and Participation Rate

Learning Goals 5. I will be able to explain the participation rate. 6. I will be able to explain how the economic cycle affects employment. 7. I will be able to explain what the economic responsibilities are of each level of government.

The Participation Rate A way of measuring the active part of the labour force. It refers to the number of people who are either employed or actively looking for work. People who are not actively looking for work are not considered in this number. Why do you think this number is important?

4 Stages of The Economic Cycle Trough Recovery Peak Recession

Trough – Pronounced Trof The lowest point on the cycle. People who are employed are cautious about spending their money. Unemployment is high Sales are low Pessimistic about the future People are bankrupting so banks are unwilling to lend money

Recovery – on the way up! Trough cannot last forever. Eventually people and businesses have to spend their money. Some business people see the end of the recession and start to take advantage of the decreased prices and high supply of labour Participation rate increases The economy gradually recovers. As people start to get jobs, they spend more money. Banks start to lend out more money and consumers use it to finance purchases.

Peak – We’ve reached the top, plant your flag. High level of employment Costs of production rise as workers are able to ask for and get higher wages. Prices start to rise Period of high inflation

Recession Businesses often overestimate demand and are forced to cut back production and employment Demand for goods declines which decreases output and decreases employment Prices of many goods start to fall Banks call in loans to get their money back Investment and participation rate falls. If a recession is too long and goes too deep it is called a depression

Your Task - Make a Poster On your computers you will create a poster demonstrating the economic cycle of a famous person’s career. Level 1 example Lindsay Lohen – missing explanations Peak – 2005, in movie Herbie, album Raw was a hit Recession – 2006 Lindsay is charged with two DUI’s Trough – 2007 Lindsay is put in rehab several times. Recovery – 2010 had a few cameo appearances in various films and sitcoms

Levels of Government and their Economic Responsibilities Learning Goal 7

Levels Federal – Canada wide, all provinces and territories Provincial – each individual province Municipal – each individual city (municipality)

Federal Responsible for decisions that affect the whole country. Eg. Trade, decisions affecting the Canadian economy. Works with Bank of Canada to help decide Canada’s monetary (supply of money and interests rates) policy Collects GST, now part of HST in Ontario Uses money towards Canada’s fiscal policy (taxes and spending).

Provincial Responsible for education, health care and highways Taxes are collected provincially (PST, now part of HST) Helps promote regionalism (different provinces have different needs)

Municipal Collects Municipal taxes for services not provided by provincial taxes. E.g. property taxes, gas and road taxes. Toronto is talking about having a tax for people specifically driving in Toronto to upkeep their roads. You must pay to drive a car in London, England

3 levels of Government Activity