Introduction to Economic Growth and Stability Chapter 8.
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Transcript of Introduction to Economic Growth and Stability Chapter 8.
![Page 1: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/1.jpg)
Introduction to Economic Growth and Stability
Chapter 8
![Page 2: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/2.jpg)
Chapter 8 Table 8.1
![Page 3: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/3.jpg)
Chapter 8 Figure 8.1
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Historical U.S. Real GDP
http://research.stlouisfed.org/fred2/series/GDPC1/106
![Page 5: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/5.jpg)
Chapter 8 Table 8.2
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Chapter 8 Figure 8.2Employment/Unemployment
Categories
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Unemployment Rate
u = (number unemployed/labor force) x 100%
Labor Force Participation Rate = (labor force/total adult population) x
100% http://research.stlouisfed.org/fred2/serie
s/CIVPART?&cid=10
![Page 8: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/8.jpg)
Kinds of Unemployment
Structural 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
![Page 9: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/9.jpg)
Chapter 8 Figure 8.3(a)
Potential v. Actual Real GDP
![Page 10: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/10.jpg)
Potential v. Actual Real GDP
Potential Real GDP assumes “full employment”
i.e., about 6% unemployment http://research.stlouisfed.org/fred2/series/
GDPPOT/106
Actual Real GDP (or simply Real GDP) captures the actual unemployment rate http://research.stlouisfed.org/fred2/series/
GDPC1/106
![Page 11: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/11.jpg)
Chapter 8 Figure 8.3(b)
Historical Unemployment
http://research.stlouisfed.org/fred2/series/UNRATE/10
![Page 12: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/12.jpg)
Chapter 8 Table 8.3
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Chapter 8 Figure 8.4
Historical Price Inflation
![Page 14: Introduction to Economic Growth and Stability Chapter 8.](https://reader035.fdocuments.net/reader035/viewer/2022062221/56649d6c5503460f94a4b378/html5/thumbnails/14.jpg)
Chapter 8 Figure 8.5Real v. Nominal Interest
Rates