introduction to economic growth and stability chapter 8

Introduction to Economic Growth and Stability

Chapter 8

Chapter 8 Table 8.1

Chapter 8 Figure 8.1

Historical U.S. Real GDP

http://research.stlouisfed.org/fred2/series/GDPC1/106

Chapter 8 Table 8.2

Chapter 8 Figure 8.2Employment/Unemployment

Categories

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

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

Chapter 8 Figure 8.3(a)

Potential v. Actual Real GDP

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

Chapter 8 Figure 8.3(b)

Historical Unemployment

http://research.stlouisfed.org/fred2/series/UNRATE/10

Chapter 8 Table 8.3

Chapter 8 Figure 8.4

Historical Price Inflation

Chapter 8 Figure 8.5Real v. Nominal Interest

Rates