1. Introduction to Economic Growth and Stability
Chapter 8

2. Chapter 8 Table 8.1

3. Chapter 8 Figure 8.1

4. Historical U.S. Real GDP

5. Chapter 8 Table 8.2

6. Employment/Unemployment Categories
Chapter 8 Figure 8.2
Employment/Unemployment Categories

7. Unemployment Rate u = (number unemployed/labor force) x 100%
Labor Force Participation Rate
= (labor force/total adult population) x 100%

8. Kinds of Unemployment Structural Unemployment Frictional Unemployment
Technological change and/or industry migration
Frictional Unemployment
Workers voluntarily search for new jobs
Cyclical Unemployment
Associated with recession
Seasonal Unemployment
Affects different industries at different times of the year

9. Potential v. Actual Real GDP
Chapter 8 Figure 8.3(a)
Potential v. Actual Real GDP

10. Potential v. Actual Real GDP
Potential Real GDP assumes “full employment”
i.e., about 6% unemployment
Actual Real GDP (or simply Real GDP)
captures the actual unemployment rate

11. Historical Unemployment
Chapter 8 Figure 8.3(b)
Historical Unemployment

12. Chapter 8 Table 8.3

13. Historical Price Inflation
Chapter 8 Figure 8.4
Historical Price Inflation

14. Real v. Nominal Interest Rates
Chapter 8 Figure 8.5
Real v. Nominal Interest Rates