Bellringer

1. What are 3 reasons people lose their jobs?

2. Calculate the GDP per capita for Travistan where

the GDP is $100 billion and the population is 10 million

(.01 billion)

3. If the Mexico’s GDP per capita of $13,360, is

Travistan richer or poorer?

4. Write down the group # you are sitting in.

Why Unemployment?

• You may be unemployed

• Problem for society

• Can cause recessions

Think back to US history

• Why was the “Great Depression” so bad?

• How did the government try to fix it?

Economic Event’s Name?Effect on GDP?

Unemployment’s effect on GDP•GDP = C + I + G+ (Exports-Imports) • Lower Consumer Spending• Lower investments, causes lower capital for new businesses• Lower Exports• Lower Imports• Lower Government spending because lower tax revenues

•GDP per capita?

Labor Force

• All 16 years and older who can work

• “LF”

Not included in Labor Force

• Children

• Fulltime Students

• Military

• Physically Disabled

• Mentally Disabled• Prisoners (over 2 million right now!)

• Discouraged Workers

• Retirees

Unemployment Rate Calculation

• Simple calculation

• # unemployed in labor force• # in labor force

Always a %Higher the % the worse it is for the

country

100

Types of Unemployment

• Why do people lose their jobs?– Or

• Why can’t they find a new job?

Types of unemployment

• Frictional Unemployment

• Time when a person is searching for a job

Types of unemployment

• Seasonal Unemployment

• Certain jobs are not year round

Types of unemployment• Cyclical Unemployment

• GDP decline

• Job losses caused by business cycle

• Layoffs during recessions

Types of unemployment• Structural Unemployment

• Caused by changes to the economy

technology

Changes in taste

Lack of skillsGlobal Competition

USA Unemployment

Arizona’s Unemployment Rate

Unemployment types Assignment1. Divide your paper into fourths

2. Draw a picture or comic to show the four types of unemployment

3. On the back of the paper, write a few sentences on how you will guard yourself against each type of unemployment

• Quantitative Easing: find an article on one of the unemployment types, cite it and summarize its findings.

GDP Assignment1. Draw a picture of each of the 4 parts of the GDP formula

2. Which part of the GDP formula is the largest? (It’s the part you are the most involved in)

3. How many recessions has Argentina had since 1900?

4. When was their worst one?

5. Why are recessions good for selling inferior goods?

6. Calculate US GDP 2010Consumers: $12 trillion

Investment: $1.45 trillion

Government: $2 trillion

Exports: $1 trillion

Imports: $2.05 trillion

7. Describe US

Trade (net….?)