Economics Ch 8

• fluctuation in the level of economics activity
• measured by rate of unemployment and changes in real GDP

• downturn in economic activity
• declining real GDP and rising unemployment

prolonged and severe recession

number of people 16+ years old either employed or not

person not currently working, actively looking for work, or person waiting to begin or return to a job

number of people in the civilian labor force 16+ years old

• percentage of people in the labor force who are unemployed
• equal to the number of people unemployed divided by the number of people in the labor force

number of people 16+ ad over employed as civilians divided by the total civilian population 16+ years old

unemployment cause by constant change in economy that prevent qualified person to match with current job openning

• cause by structural charactiristics of economy which make very hard for job seekers to find employment
• job opening which people are not qualified for

due to recessionary business conditions and inadequate labor

level of employment that results from the efficient use of the labor force taking into account the normal rate of unemployment

• normal unemployment rate due to frictional and structural condition
• occur when economy is operating at a sustainable rate of output

level of possible output according to labor force, productivity

unexpected increase in the general level of prices

expected increase in general level of prices