1. Unemployment (National)

2. Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working or looking for a job Unemployed Persons= 16+ civilians who are looking for a job but do not have one

3. Unemployment (National)

5. Labor Force Participation Rate % of working age people who are –Working –Looking for a Job Working Age –16-64

6. Labor Force Participation Rate

10. Business Cycle Recession- real GDP goes down for at least 6 months. REALGDPREALGDP

11. GDP Gross Domestic Product Total valueTotal value (in dollars) of all final goods and services produced within a country within a given year

12. GDP C + I + G + NX Don’t Count –Used –Transfers –Non-market –Intermediate goods

13. Frictional Structural Cyclical Seasonal Not

14. Hit the debt ceiling, government slashes spending, GDP tanks Frictional Structural Cyclical Seasonal Not

15. You can’t stand this class anymore, drop out, and start looking for work Frictional Structural Cyclical Seasonal Not

16. A former switchboard operator is having trouble finding a skilled position Frictional Structural Cyclical Seasonal Not

17. New Jersey surf instructor in January Frictional Structural Cyclical Seasonal Not

18. Mr. Parish this spring. Frictional Structural Cyclical Seasonal Not

19. Mr. Parish this spring. Frictional Structural Cyclical Seasonal Not

20. Which Type of Unemployment? With new and easier tax software, John is afraid H&R Block might not need him in a few years. –Frictional –Cyclical –Structural –Seasonal

21. Poor __________ Assignment A. Write a brief story about a person who experiences all four types of unemployment within one year. B. Title it- Poor (name of character) C. Put the type of unemployment in parenthesis, behind each example. (i.e. structural)

22. Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working or looking for a job Unemployed Persons= 16+ civilians who are looking for a job but do not have one

23. September Jobs Report 7.2% unemployment rate (7.3% Unemployed= 11.3 million Long Term Unemployed = 4.1 million –27 weeks U-6 rate= 13.6% (13.7%) Added 148,000 –12 month average = 185,000

24. Calculate Population = 10,000 Population 16-64 = 8,000 Employed Persons = 5,000 Unemployed Persons = 350 --------------------------------------------------------- Labor Force = ____________ Unemployment Rate = ______________ Labor Force Participation Rate = _______

25. Calculate Population = 10,000 Population 16-64 = 8,000 Employed Persons = 5,000 Unemployed Persons = 350 --------------------------------------------------------- Labor Force = 5,350 Unemployment Rate = 6.54% Labor Force Participation Rate = 66.88%

26. Labor Force Participation Rate % of working age people who are –Working –Looking for a Job Working Age –16-64

27. Consumers Price Index SubgroupsJune 2000June 2001 Restaurant meals and ready-to-eat food 10161054 Household appliances and furnishings 9961043 Clothing10051022 Footwear10001006 Alcoholic drinks10151041 Stationery, books, magazines and newspapers 10081066 All Groups10201053

28. Consumer Price Index Babe Ruth’s Salary –1931= $80,000 Average Player Today= $2,272,620

29. Consumer Price Index Herbert Hoover= $75,000 President Bush = $400,000

30. Consumer Price Index 1.5% annual.1% August

31. Consumer Price Index Measures change in price level of a “fixed basket of goods” Urban Areas Used for Social Security “cost of living” adjustments

32. CPI (Consumer Price Index)

33. GDP Deflator versus CPI GDP Deflator- changing basket CPI- fixed basket

34. Economic Indicators Business Cycle –“Real” GDP versus “Nominal” –GDP Deflator –C+I+G+NX –6 month contraction = Recession Unemployment Rate –4 Types –Calculation Inflation –CPI/GDP Deflator –Cost of Living Adjustment –“Real” Income

35. Stock Indexes measure the performance of a segment of the stock market Dow Jones Industrial Average –30 Large Companies NASDAQ –3,000 companies –Technology/growth companies (ex- Google) S&P 500 –500 companies of various industries

38. NASDAQ

39. Economic Indicators Business Cycle –*GDP = 16 Trillion –GDP Growth = (about) 2% Unemployment Rate –*7.2% Inflation –CPI = 1.5% Stock Indices

40. Unemployment Formula Unemployment Rate= Unemployed Persons/Total Labor Force X 100 Labor Force= all civilians 16+ who are working or looking for a job Unemployed Persons= 16+ civilians who are looking for a job but do not have one

41. Economic Indicators Business Cycle –*GDP = 15 Trillion –GDP Growth = (about) 2% Unemployment Rate –*7.9% Inflation –CPI = 3.2% Stock Indices