ECON 1500 Exam 2 Tyler Bowles Questions
and Answers| Updated
Classical Economics
laissez-faire, invisible hand is good at meeting societies needs, focus is on the long
run. Say's Law.
Keynesian Economics
Government stabilizes economy, the invisible hand can't fix unemployment and
depressions, focus is on the short run. Focus on demand/aggregate demand.
Says Law
Supply creates its own demand
labor force
the total number of workers, including both the employed and the unemployed.
Must be 16+
Unemployment rate formula
unemployed/labor force
unemployment rate
the percentage of the labor force that is unemployed
unemployed
, Must be actively looking for work.
Labor force participation rate formula
# in demographic group in the Labor Force/Demographic group
labor force participation rate
the percentage of the population aged 16 or older that is in the labor force
Types of unemployment
frictional, structural, cyclical
frictional unemployment
unemployment that occurs when people take time to find a job
structural unemployment
unemployment that occurs when workers' skills do not match the jobs that are
available
cyclical unemployment
unemployment that rises during economic downturns and falls when the
economy improves (recession, depression)
Which form of unemployment can be zero?
Cyclical
and Answers| Updated
Classical Economics
laissez-faire, invisible hand is good at meeting societies needs, focus is on the long
run. Say's Law.
Keynesian Economics
Government stabilizes economy, the invisible hand can't fix unemployment and
depressions, focus is on the short run. Focus on demand/aggregate demand.
Says Law
Supply creates its own demand
labor force
the total number of workers, including both the employed and the unemployed.
Must be 16+
Unemployment rate formula
unemployed/labor force
unemployment rate
the percentage of the labor force that is unemployed
unemployed
, Must be actively looking for work.
Labor force participation rate formula
# in demographic group in the Labor Force/Demographic group
labor force participation rate
the percentage of the population aged 16 or older that is in the labor force
Types of unemployment
frictional, structural, cyclical
frictional unemployment
unemployment that occurs when people take time to find a job
structural unemployment
unemployment that occurs when workers' skills do not match the jobs that are
available
cyclical unemployment
unemployment that rises during economic downturns and falls when the
economy improves (recession, depression)
Which form of unemployment can be zero?
Cyclical
