Term
| Main labour market is measured in ______ |
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Definition
| Aggregate Total hours per worker |
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Term
| Wealthy Countries work (more or less) as their GDP grows. |
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Definition
less*
*United States remains constant |
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Term
| Total Hours Per Person (3 Parts) |
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Definition
Average number of hours for individuals of a given economy
1. Participation Rate
2. Employment Rate
3. Hours per Worker |
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Term
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Definition
short run fluctuations associated with business cycles
i.e. early 80s, early 90s, great recession: unemployment rose immensely |
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Term
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Definition
long run fluctuations that occur over a long period of time
i.e. unemployment increased in 80s, decreased in 90s |
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Term
| employment, hours per worker, and labour force participation are (procyclical or countercyclical) |
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Definition
procyclical
move with declines and increases in economy
employment > labour force participation
employment > hours per worker |
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Term
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Definition
Unemployed become discouraged about finding employment so they drop out of the labour force.
Lowers unemployment but indicates bad health of economy. Can lead to misleading unemployment rates. |
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