1. A B C “Yes” to any question Under age 16? In an institution?
On active duty in the military?
Not surveyed by the Bureau of Labor Statistics
70.8 million A
“No” to all questions in Box A
Worked at all last week for pay or profit?
Worked 15 hours or more in a family business?
EMPLOYED
million B
“Yes” to either question
LABOR FORCE
153.2 million
“No” to both questions in Box B
Been actively searching for work?
Available to start a job?
UNEMPLOYED
7.2 million C
7.1
“Yes” to both questions
“No” to either question in Box C
NOT IN THE LABOR FORCE
79.5 million

2. Table 7.1

3. Unemployment Rate (percent)
7.2
1980
2001
Year

4. Wage
Supply WE
7.3
Demand
Quantity of Labor LE

5. Wage Supply Demand Quantity of Labor Labor Surplus (Unemployment) W*
7.4
Demand
Quantity of Labor LD LS

6. Aggregate demand for goods and services
Production generates incomes
Employment and output
Income
Incomes give actors the ability to spend
Spending stimulates firms to produce
7.5
Aggregate demand for goods and services

7. Actual Rate of Unemployment
Unemployment Rate
“Natural” Rate of Unemployment
7.6
Year

8. NAIRU Inflation (percent per year) Unemployment Rate (percent) 1969
1968
1967
Inflation (percent per year)
1966
1965
1964
1963
7.7
Unemployment Rate (percent)

9. Unemployment Rate (percent)
“Natural” Rate?
Unemployment Rate (percent)
7.8
1970
1980
1990
2000
Year

10. Labor Force Participation Rate (percent)
Men
Labor Force Participation Rate (percent)
Women
7.9
Year 10