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25 Cards in this Set
- Front
- Back
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Employed persons |
People over 15 Willing/able to find work |
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Unemployed persons |
People over 15 Actively seeking work, but unable to |
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Labour force |
People over 15 Willing/able to find work |
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Non-labour force |
People over 15 Unwilling/unable to find work |
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Unemployment rate |
- Measuring Labour Force - Survey - Limitations: may life, small sample size = unemployed seeking work / unemployed seeking work + employed |
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Participation rate |
- Measuring Labour Force % of people over 15 willing/able to to work = WAP - employed - unemployed seeking work / WAP |
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Underutilisation rate |
- Measuring Labour Force % of the sum of the number of people unemployed and the number underemployed |
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Full employment |
Concept where all/most individuals who want to work are able to find work |
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NAIRU |
Non Accelerating Inflation Rate of Unemployment - Unemployment is low, but not so low that is causes inflation to rise. - You want some unemployment, or they'll be an increase in demand, but supply will be insufficient |
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Hidden Unemployment |
People over 15 who could work, however aren't actively seeking - Hidden from data |
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Disguised/Under Employment |
People are working, but not to full capacity - Part time - Overqualified |
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Cyclical Unemployment |
Occurs when there is a downturn in the economy - Less growth = more cyclical unemployment |
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Natural Unemployment |
Occurs naturally in the economy - Government can't control |
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Seasonal Unemployment |
Type of natural unemployment - Unemployment depending on the season EG: tourism, skiing, public holidays, farming |
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Structural Unemployment |
Type of natural unemployment - Occurs due to changes in the structure of the economy EG: technological advances |
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Frictional Unemployment |
Type of natural unemployment - When people are inbetween jobs EG: builders, entrepreneurs, freelance writers, painters, actors |
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Hardcore Unemployment |
Type of natural unemployment - People who are unemployed for extended period of time EG: past prisoners, disabled, high demand for certain job |
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Aggregate demand |
AD = C + I + G + (X-M) |
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Aggregate supply |
- Availability of Resources - Cost of production - Efficiency/Productivity |
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Ceteris Paribas |
- All other things being equal - Only look at one thing in isolation, separate from other factors |
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Factors effecting unemployment - AD |
AD Income Confidence Aussie dollar Interest rates |
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Factors effecting unemployment - AS |
AS Natural Disaster Ageing population Interest rates Tech advances Taxes (company, income) |
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Government Policies to generate unemployment - Demand |
Monetary Policy - manipulates interest rates - Decreased interest rate - Increase in discretionaryincome (income after paying off loans) - Increase in householdconsumption. - Increase in aggregate demand - Correspondingincreased GDP as well as a higher demand for labour - Decrease in unemployment – Ceteris Paribas. |
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Government Policies to generate unemployment - Supply |
The Budgetary/Fiscal Policy - manipulates the governmentrevenue and expenditure -Increased spending on infrastructure - Increase in efficiency. - Increase in AS - Corresponding increased GDP - Higher demand for labour - Decrease in unemployment – Ceteris Paribas. |
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Impacts of Unemployment on Living Standards |
M - GDP per capita NM - Crime rate - Drugs/alcohol - Happiness - Mental Health - Socia cohesion |
