Example of Structural
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This person was laid off last year when new equipment was installed at the
plant, reducing the number of workers needed. Stopped looking for job
even though available for work
The effect of an increase in the nominal interest rate on the demand for money curve
is to
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create a movement upward along the demand for money curve
, If you use $500 of currency to make a deposit in a saving deposit
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M1 decreases, but M2 is unchanged
labor force
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sum of unemployed and employed
Example of Frictional unemployment
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This person has just graduated from college and will start a new job in
three weeks. In the meantime this person will tour the beaches
In response to Inflationary gap, The Fed
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lowers the federal funds rate by buying U.S. government securities
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This person was laid off last year when new equipment was installed at the
plant, reducing the number of workers needed. Stopped looking for job
even though available for work
The effect of an increase in the nominal interest rate on the demand for money curve
is to
Give this one a try later!
create a movement upward along the demand for money curve
, If you use $500 of currency to make a deposit in a saving deposit
Give this one a try later!
M1 decreases, but M2 is unchanged
labor force
Give this one a try later!
sum of unemployed and employed
Example of Frictional unemployment
Give this one a try later!
This person has just graduated from college and will start a new job in
three weeks. In the meantime this person will tour the beaches
In response to Inflationary gap, The Fed
Give this one a try later!
lowers the federal funds rate by buying U.S. government securities
